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.