Jakarta – An audit has revealed evidence that state funds may have been used inappropriately by the central and local governments, ministries and state firms in the second semester of 2007, with potential losses of up to Rp 23.34 trillion (US$2.56 billion).
The Supreme Audit Agency (BPK) reported its findings to the House of Representatives on Thursday, after focusing its audit on 127 divisions within central government departments, 562 divisions of regional administrations and 16 state enterprises.
BPK chairman Anwar Nasution said the main causes of irregularities were the lack of transparency and accountability as well as insufficient internal control.
"The agency found 267 indications of state losses worth Rp 420.01 billion and 158 indications of uncollected local incomes worth Rp 249.79 billion.
"There are also 733 indications of administrative malfeasance in local governments worth Rp 20.12 trillion, 193 indications of budget inefficiency worth Rp 459.27 billion and 214 indications of budget misuse worth Rp 2.1 trillion," Anwar said.
Evidence of possible irregularities in state enterprises was also present, he said. "Some significant findings are a Rp 17.88 trillion inaccuracy of PT Taspen's 2006 financial statement, an indication of PT Taspen's fake fixed deposit worth Rp 110 billion and an indication of state logistic company Bulog losses worth Rp 77.49 billion."
During a press conference after the agency's presentation, Anwar said the audit results were not that surprising.
"Indonesia is still in a transition period. We must remember that we used to live in an era where the state financial management system was awful. Efforts to establish a respectable state budget system, which the government is currently undertaking, are actually new and have not yet shown major progress," he said.
Under existing regulations, BPK reports to the House regarding the results of its audit – conducted at least once per semester in a fiscal year – before lawmakers seek confirmation from relevant government institutions.
If deemed sufficient, the House then can forward the BPK reports to the Attorney General's Office or the National Police. However, in some cases BPK is actively assisting authorities in their investigations, as confirmed by a BPK member, Udju Djuhaeri. (uwi)