T

he International Organization Supreme Audit Institution Working Group on Accountability for Audit Disaster-related Aid (INTOSAI WG AADA) disclosed that the 2004 tsunami disaster had served as a lesson on the need for strict supervision procedures of international aid in disaster recovery.

After the tsunami that claimed hundreds of thousands of lives in 14 countries in 2004, a massive amount of international relief aid had been distributed, but had been difficult to trace.

“After the 2004 tsunami, for example, the audit institution faced difficulties in tracking funds given by the United Nations, the United States or Japan. Somewhere along the line, it is difficult to see what happened to the money,” said INTOSAI WG AADA head Gjis M De Vries at the opening of the INTOSAI WG AADA meeting held at Hotel Royal Ambarukmo, Yogyakarta, on Monday.

The meeting, which will conclude on Tuesday, was inaugurated by Supreme Audit Agency (BPK) head Hadi Poernomo. Among those attending the event were National Disaster Mitigation Agency (BNPB) head Syamsul Maarif, Yogyakarta Governor Sri Sultan Hamengku Buwono X, representatives of supreme audit institutions from 14 countries, the United Nations Emergency Response Fund (UNCERF) and Transparency International.

De Vries said that corruption involving disaster funds had apparently taken place. The potential of corruption, for example, might have taken place during disaster response situations, as the government had to make policies quickly. Consequently, the INTOSAI WG AADA was making efforts to develop a supervision procedure for relief funds usage to minimize the potential for corruption.

“If we have a good procedure, it can be effective in giving aid and have a minimum risk of corruption,” said De Vries.

He added that all international aid was derived from taxpayer money so transparency and accountability was required in its use, while disaster victims also needed an official and complete report on the aid they received.

In his keynote address, BNPB head Syamsul Maarif acknowledged that the government had encountered problems in using relief aid in urgent situations during a disaster. On one hand, the government needed to disburse the funds quickly as a response to the emergency situation, he said. However, on the other hand the use of relief funds had to be accounted for.

“The big question is what kind of approach can be employed to ensure administrative and financial transparency in using the budget,” said Syamsul.

Hamengku Buwono, who has had experience in mitigating the massive earthquake in 2006 and the Mount Merapi volcanic eruption in 2010, said not only was auditing the use of funds important, but that policies on disaster recovery must be based on local wisdom.

In the Yogyakarta earthquake in 2006, Hamengku Buwono said hundreds of thousands of homes had to be rebuilt. However, as residents were provided with only Rp 15 million (US$1,700) to rebuild their homes, they took the initiative to reuse building materials that could be salvaged, such as roof tiles. But, according to BPK regulations, all building materials had to be new.

“Local wisdom and budgeting should be the basis for policymaking for the post-disaster recovery,” said Hamengku Buwono.