Jakarta – The government has closed 39,477 unregistered state bank accounts since 2004, the latest Supreme Audit Agency (BPK) report shows.
According to its 2009 first semester audit report, the BPK has found that the government had managed to shut the unregistered accounts belonging to a number of ministries and other state institutions. Total funds deposited in these accounts amounted to Rp 35.4 trillion (US$3.75 billion), $238 million, and $2.9 million ($4.17 million).
"This is a positive performance by the government as part of its efforts to upgrade the state financial system," BPK's head of public relation division, Dwita Pradana, said on Monday.
The audit agency has continually monitored unregistered bank accounts owned by government institutions in its annual audits since 2004.
Of all the unregistered accounts found by the BPK, only a small number are now left unclosed, waiting for the Finance Ministry to finish its examination of the details.
"Unregistered accounts may become the centers of graft scandals and therefore should be closed," Dwita said.
Under the 2004 State Treasury Law, ministries and state institutions are permitted to hold accounts only on condition of approval by the Finance Minister on behalf of the state treasury. All other accounts are deemed illegal.
Aside from its decision to close thousands of unregistered accounts, the team also identified 260 "illegal" bank accounts holding up to Rp 314 billion that potentially involved corrupt practices and in September the BPK reported these accounts to the Corruption Eradication Commission for further investigation.
The accounts belonged to the Supreme Court, the Ministry of Justice and Human Rights, the Home Ministry, the Agriculture Ministry, the Manpower and Transmigration Ministry, and the upstream oil and gas regulator BPMigas.
In another part of its report, the BPK also showed that the government has largely succeeded in improving the budget managements of its ministries and other state bodies at central government level.
Of 83 ministries and state bodies audited by BPK in 2009, only 18 were recorded as receiving "disclaimer" notes, far fewer than the 33 in 2008 and 36 in 2007.
However, the audit agency stated that there were still a number of irregularities in government's budget management.
BPK reportedly found Rp 38.49 trillion of possible losses as a result of irregular project administration, mismanagement, unfinished business contracts, fictitious transactions or lack of monitoring.
"Of that number, the government had managed to follow up and rectify only Rp 525.32 billion," Dwita said. (bbs)