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ASEAN to set up joint supreme audit institution later this year

The Association of South East Asian Nations (ASEAN) plans to establish a joint supreme audit institution later this year to improve good governance in the region, where graft remains prevalent, officials say

Esther Samboh (The Jakarta Post)
Jakarta
Tue, July 26, 2011

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ASEAN to set up joint supreme audit institution later this year

T

he Association of South East Asian Nations (ASEAN) plans to establish a joint supreme audit institution later this year to improve good governance in the region, where graft remains prevalent, officials say.

Daeng M. Nazier, a Supreme Audit Agency (BPK) official, said Monday that in the first years of its operation, the suprme audit body would work to syncronize audit standards among the ASEAN members.

But with growing joint plans, including the 2015 ASEAN Economic Community, the so-called ASEAN SAI (Supreme Audit Institution), is expected to audit multilateral activities implemented within the region, he added.

“The first focus will be to increase capacity between our countries,” he told a news conference, on the sidelines of a technical meeting between ASEAN auditors to draft an agreement on the supreme audit agency. “If we succeed in supporting good governance in our respective countries, in 2015 there will be an ASEAN community that will require us to prepare to head toward euro joint auditors — the European court of auditors.”

The European court of auditors carries out audits assessing the collecting and spending of funds within the European Union (EU) in order to check that the funds available to the EU are used appropriately to ensure the maximum value of EU citizens’ money, according to its website.

Daeng, however, noted the “different maturity level between ASEAN countries”; therefore, intensified talks are necessary to go in such a direction. “We are buildinging history. This is the first step.”

Taufiequrachman Ruki, a member of the BPK, said the ASEAN supreme audit agency would be established during the ASEAN summit in Bali in November.

“Indonesia’s corruption perception index is always low; other ASEAN countries are also like that. Singapore is the only bright example,” Taufiequrachman said at the same event. “So, why not work together with ASEAN’s supreme auditors to promote good governance?”

The latest 2010 corruption perception index, published annually by NGO Transparency International, ranked Indonesia at 110 out of 178 countries, according to the degree to which corruption is perceived to exist among public officials and politicians.

Myanmar ranked 176, Laos and Cambodia 154, Philippines 136, Vietnam 116, Thailand 78, Malaysia 56, Brunei 38 and Singapore 1 in the index. Singapore’s supreme audit agency is not included in the ASEAN SAI.

“Corruption eradication through law enforcement is not enough. Senior corruptors are arrested, and then junior corruptors take over. That’s because clean and good governance principles are not applied. Through an ASEAN SAI, we would promote these values through discussions to improve state management,” he added.

In 2008, ASEAN members adapted a charter that turned the region into a rules-based bloc that aims to become a security, economic and socio-cultural community by 2015, enhancing connectivity within the region.

ASEAN members have signed up to the International Organization of Supreme Audit Institution at the global level, and the Asian Organization of Supreme Audit Institution at the Asian level, but audit activities have so far not focused on increasingly important issues within the Southeast Asian region, the BPK said in a press statement.

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