http://thejakartaglobe.com/business/audit-finds-potential-indonesian-state-graft-losses-of-770m/330087
September 15, 2009 Dion Bisara Audit Finds Potential Indonesian State Graft Losses of $770m The Supreme Audit Agency on Tuesday revealed that it had identified 223 cases involving the potential misuse of public funds by the central and local governments in 2008 worth a combined total of $770 million. The agency, also known as the BPK, has only reported 19 of these cases - worth a total of Rp 340.94 billion ($34.4 million) - to law enforcement agencies, however. It has not released details on these cases. The audit process took place over the first six months of 2009 and looked into the financial reporting methods of local governments, along with government ministries and their regional offices. The findings, which highlighted the potential misuse of Rp 35.15 trillion of state funds, were submitted to the House of Representatives (DPR) on Tuesday. "The audit on state financial management and reporting for 2004 to 2008 has found some weaknesses, but we have also seen some improvements," said BPK chairman Anwar Nasution. The audits revealed serious problems within the Ministry of Health, which accumulated reporting irregularities worth Rp 691.17 billion. The Foreign Ministry, meanwhile, incorrectly reported Rp 786 billion in revenue. The Ministry of Home Affairs was also investigated over Rp 2.89 billion worth of travel expenses for ministry officials, of which Rp 1.29 billion has since been recovered. At the provincial level, the government of Central Java stands accused of incorrectly reporting approximately Rp 11.24 trillion in revenues. The law mandates the utilization of standardized accounting procedures across all levels of government throughout the country, but the BPK audit revealed that these methods have still not been properly implemented in many areas. In Central Kalimantan, for example, the BPK uncovered improper forestry procedures that resulted inRp 101.08 billion of losses.
