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Administration takes action after bad audit results
The Jakarta administration has planned three initiatives in response to an audit by the Supreme Audit Agency (BPK), which placed the city's 2007 budget in the "lowest confidence" category after finding numerous irregularities in the city's bookkeeping
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The Jakarta administration has planned three initiatives in response to an audit by the Supreme Audit Agency (BPK), which placed the city's 2007 budget in the "lowest confidence" category after finding numerous irregularities in the city's bookkeeping.
Sukri Bey, assistant to the city secretary for financial affairs, said Wednesday the administration's plan was aimed at lifting the BPK disclaimer.
"First, we'll revise our budget accounts in adherence to the accounting system regulated by the central government," he said.
"Second, we'll list our assets in greater detail. Third, we'll reduce the number of asset categories from the current 19 to six," he said.
Among the future asset categories are fixed assets, land, and irrigation systems, such as dams and water reservoirs, said Sukri.
"We expect to finish the actions by November this year so that the BPK will find our budget accounts better in their next audit," he said.
The BPK issued the disclaimer after discovering 169 irregularities totaling over Rp 5.6 trillion (US$604 million). The BPK Jakarta office head, I Gde Kastawa, said Tuesday his team found the irregularities while trying to confirm accounts with relevant working units at the administration.
"For example, we were unable to confirm a number of working units' fixed assets," he said. "We did not know what the assets looked like nor did we know of their whereabouts."
He said the BPK would further investigate the irregularities to determine whether they could lead to corruption charges.
According to Kastawa, the findings encompassed Rp 17.27 billion in potential losses in city revenue and Rp 5.59 trillion in administrative flaws.
Discrepancies were found in the administration of a number of agencies, including the financial bureau, the revenue agency, the city's parks agency, the housing agency, the public works agency, the mining agency, the city transportation agency, the basic education agency and busway operator TransJakarta.
Deputy Governor Prijanto said there were no corruption indications in budget expenditure last year.
"It's all about administrative errors," he said.
"The BPK only listed assets with complete documents, and excluded assets of their documents were found to be incomplete, or still in progress."
He said he would require all related working units to promptly submit the relevant city revenue documents.
"Budget account revision must be finished by the end of this year. If we find anyone allegedly involved in corruption, we'll not let them get away with it," he said.
