Supreme Audit Agency wants follow-up on irregularities

Supreme Audit Agency wants follow-up on irregularities

Urip Hudiono, The Jakarta Post, Jakarta

The Supreme Audit Agency (BPK) is asking for greater cooperation
from related offices in following up on its findings of
irregularities.

Such cooperation has become urgent, BPK chief Anwar Nasution
said at a workshop on the state audit system on Friday, as the
public has increased the pressure on the agency to act on its
audit findings.

In the BPK's latest audit of selected state financial reports,
several possible major irregularities at a number of state-owned
enterprises were uncovered.

"We call on the police and prosecutors to be serious about
investigating our findings, which will help eradicate corruption
in the country and improve the state's financial administration
and management in the future.

"The BPK does not have the authority to do what the public
expects after we have finished our audits. We are only auditors,
we do not have any law enforcement officers or prison cells," he
said.

The agency submitted in November its audit report for the
first semester of 2005 to the House of Representatives.

In the report, the agency reported it found 11 cases of
possible irregularities at state firms, with potential losses to
the state amounting to Rp 2.59 trillion (some US$259 million) and
US$39.1 million.

As with the BPK's previous findings, there has been little
follow-up action on its findings, which were also reported to the
Attorney General's Office.

Anwar pointed to other cases where the BPK received little
support, most notably in the matter of major irregularities in
the disbursement of Bank Indonesia liquidation funds to support
banks during the 1997 financial crisis (the BLBI cases).

"The BPK finished the BLBI audit five years ago, but what has
happened since then?" he asked.

"Many of the investigations were dropped. Some suspects have
been allowed to go to Singapore and enjoy life there, without
having to take responsibility for their crimes, while we pay the
losses."

Anwar said the improved cooperation with the agency should
also include the willingness of all state institutions to comply
with the agency's authority as the country's supreme auditor, in
accordance with the Constitution, in examining their financial
administrations.

"This includes the tax office," he said. "Indonesia is perhaps
the only country in the world where the state audit agency cannot
access and audit the tax office."

However, Anwar expects this to change. With the tax law
amendments being deliberated in the House, and public calls for
greater transparency in the tax regime, Anwar expects the BPK
will soon be able to audit the tax office.