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Too many chiefs complicate aid audit

| Source: JP

Too many chiefs complicate aid audit

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The Supreme Audit Agency (BPK) said on Thursday it was facing
difficulties in auditing the use of humanitarian funds in Aceh
due to the presence of more than one authority in charge of the
funds.

Speaking to reporters after meeting with Vice President Jusuf
Kalla to discuss the issue, BPK chief Anwar Nasution said that
there were "too many rulers" in tsunami-hit Aceh during the
humanitarian relief phase.

He pointed to the Office of the Coordinating Minister for
People's Welfare, the military, and the provincial
administration, all of which have been using the emergency funds
without proper coordination.

"There is Alwi Shihab, there is the civil emergency
administrator, there is Bambang Darmono, there is the deputy
governor. There is a problem with coordination," he said.

Alwi is the Coordinating Minister for People's Welfare
mandated to handle the humanitarian operation in Aceh following
the Dec. 26 tsunami, while Bambang is a major general who is an
assistant to the military chief on welfare issues. Considering
that Aceh is under a civil emergency administration amid decades
long conflict between the military and local rebels, the military
has strong power in the province. The deputy governor of Aceh
also has administrative power (the current governor is on trial
on corruption charges) after the government granted the province
special autonomy.

"Aceh is not only suffering due to the tsunami but also
conflict. This is complicated. There are too many rulers," Anwar
said.

According to Anwar, there should be only one leader in charge
of distributing the funds to make a credible audit and to make
sure that the aid from the donors goes into the right hands.

"Don't forget, international confidence in us is very low," he
said, adding that additional funds from donors for the
reconstruction of the badly damaged province would depend on
whether the country could show to the world that the funds were
not being misused.

The government has been under strong pressure particularly
from the international community to ensure that the massive
amount of humanitarian financial aid dedicated to Aceh is not
abused.

BPK has so far recorded over Rp 40 trillion (US$4.33 million)
in aid funds distributed to Aceh. The funds consisted of some Rp
39 trillion from foreign donor countries, Rp 163.9 billion from
state-owned enterprises and Rp 894.38 billion from the public.

The government has allocated some Rp 45 trillion for the
reconstruction of Aceh.

Elsewhere, BPK also complained that the government's financial
report on the use of humanitarian funds in Aceh was not made in
accordance with existing accounting standards.

Anwar Nasution said that the poor quality of the report would
make it difficult for the agency to conduct a proper audit on the
use of the funds.

The former top official of Bank Indonesia said that so far BPK
had only received a report from the Office of the Coordinating
Minister of People's Welfare.

Anwar also said that BPK would open an office in Banda Aceh so
they could start conducting the audit work. The auditing team is
expected to work for one year.

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