Urip Hudiono, Jakarta – The Supreme Audit Agency (BPK) has found four cases of irregularities in the management of public funds during the first semester of this year, leading to potential taxpayer losses of some Rp 123 billion (US$13.6 million).
The cases have been reported to the Attorney General's Office (AGO) for further investigation, BPK chairman Anwar Nasution said in a report presented Tuesday to a House of Representatives plenary session.
Another three cases of suspected malfeasance involving state-owned enterprises (SOEs) have also been reported to the Corruption Eradication Commission (KPK). The BPK did not specify the potential losses caused by these cases.
The cases reported to the AGO include one involving the management of state-owned Bank Negara Indonesia (BNI)'s Rp 45.03 billion pension fund, and one involving export credits worth US$4.23 million for the procurement of military helicopters by the Defense Ministry and the Indonesian Army.
The BPK also reported cases of financial mismanagement resulting in losses of up to Rp 31.9 billion at state insurance firm PT Asuransi Jiwasraya, and Rp 8.18 billion at state credit insurance company PT Askrindo.
The three malfeasance cases reported to the KPK, meanwhile, involved an expansion plan at state-owned pharmaceutical firm PT Kimia Farma, and irregularities in the accounts of national flag carrier PT Garuda Indonesia and state-owned survey firm PT Surveyor Indonesia.
The BPK's latest semiannual report was compiled from the audits it conducted between January and June 2006 on the accounts of SOEs, local governments and local government-owned firms, the central bank and the state Deposit Insurance Agency (LPS).
Also included were the BPK's audit findings on the government's 2005 annual accounts, which were once again subject to a disclaimer by the agency due to its disagreement with the bookkeeping and internal supervisory procedures employed by the Finance Ministry in preparing the accounts.
The BPK was largely satisfied with the accounts of Bank Indonesia and the LPS, Anwar said.
The agency also approved 291 out of 344 sets of local government accounts, while slapping disclaimers on 27.
In its report, the BPK referred to its concern over Rp 204.88 billion in non-performing loans at PT Bank Syariah Mandiri, a Rp 14 billion problematic loan at Garuda, and up to Rp 600 billion in subventions that the government has yet to disburse to a number of state fertilizer manufacturers.
Regarding its SOE audits, the BPK referred to a questionable Rp 294 billion procurement project at state logistics agency PT Bulog, and $1.23 billion in potential losses resulting from a production sharing contract with PT Chevron Pacific Indonesia.
"We still have a long road ahead of us before we properly implement the new laws on public-sector financial management, reporting and auditing. In addition, the BPK is understaffed. But, we're all trying to improve," Anwar said. "And the BPK will continue to be proactive in consulting with other institutions and making suggestions about how they can improve."