Watchdogs call for standard financial report

Watchdogs call for standard financial report

Kurniawan Hari, The Jakarta Post, Jakarta

The Indonesian Corruption Watch (ICW) and Transparency
International Indonesia (TII) urged the House of Representatives
(DPR) on Wednesday to include in the election bill an article
that would require political parties to follow a standardized
financial report format.

They argued that the lack of a standardized financial report
would create unnecessary difficulties for public auditors
carrying out their tasks.

"We want a clear standard to be mentioned in the election bill
currently being deliberated," Teten said after a meeting with
leaders of the Indonesian Accountants Association (IAI) Ahmad
Hadibroto and Eri Riyana Harjapamekas.

The House is currently debating on the election bill, which
they hope to endorse on Feb. 11.

Meanwhile, treasurer of TII Paul Hadiwinata said that a clear
standard would help public auditors in examining political
parties' financial reports.

Teten and Paul emphasized that the characteristics of a
political party were different from other organizations,
therefore a clear financial report standard specific to political
parties should be outlined by the Indonesian Accountants
Association (IAI).

Ahmad and Eri Riyana have said that they were ready, if asked,
to outline a financial report standard for political parties.

Teten added that the financial reports of political parties
that contested in the 1999 general elections could not be audited
due to the erroneous structure of the reports.

He said that public auditors had no choice at the time but to
make up an audit to legalize the results of the 1999 general
election.

"We don't want to repeat that practice, therefore we want a
clear standardized reporting style as a reference for political
parties," he added.

Teten emphasized that the rules on campaign funds should at
least consist of three aspects: regulations on the receipt of
campaign funds, regulations on the expenditure of the funds, and
an accountability report on the usage of funds.

ICW and TII, grouped in the coalition of non-governmental
organizations for the elections bill, suggested that separate
accounts must be kept detailing each political party's campaign
funds and their operational funds.

The separated accounts would enable auditors to identify
easily which transactions were campaign-related, and which were
not. A campaign fund account should be opened at a bank six
months before, and be closed 30 days after, the elections.