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BPK'€™s audit standards seen as too low: Analyst

An analyst criticized the Supreme Audit Agency (BPK) for the low standards of transparency and bookkeeping in its audit

The Jakarta Post
Jakarta
Wed, June 12, 2013

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BPK'€™s audit standards seen as too low: Analyst

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n analyst criticized the Supreme Audit Agency (BPK) for the low standards of transparency and bookkeeping in its audit.

The BPK'€™s audit resulted in the National Police and the Religious Affairs Ministry '€” two of the most corrupt government institutions in the country '€” being given one of the highest scores for audit by the agency.

'€œIt has become an annual ritual,'€ said Yuna Farhan from the Indonesian Forum for Budget Transparency (Fitra), responding to the results of BPK'€™s latest audit.

Yuna said the two government institutions did not deserve the unqualified opinion rating.

He cited Fitra'€™s findings in the National Police'€™s financial report in 2010-2011. In March, Fitra revealed that the National Police received over Rp 268.9 billion (US$27.37 million) in non-budgetary funds.

Yet, in 2011, BPK chairman Hadi Poernomo awarded the National Police one of the highest scores for audit; unqualified opinion.

By giving such a high rating, the BPK failed to perform its role to give an early warning.

'€œTake the Hambalang case for example. The Corruption Eradication Commission [KPK] revealed the case first, then the BPK found the irregularities in the financial report. It should be the other way around,'€ Yuna said.

The BPK submitted the audit for the 2012 Government Financial Report (LKPP) to the House of Representatives on Tuesday and gave an unqualified opinion to 69 government agencies, including the Religious Affairs Ministry, National Police, the House of Representatives and the Finance Ministry.

Hadi said that the government agencies appeared to have worked very hard to achieve the rating.

Todung Mulya Lubis, former executive director of Transparency International Indonesia (TII), praised the fact that there was an increase in the number of agencies getting the unqualified opinion. Despite this Todung said problems remain.

'€œPublic opinion [of the agencies] remains negative,'€ said Todung.

A survey by TII in 2009 found the House to be the most corrupt institution in the country. In 2012 Soegeng Sarjadi Syndicate (SSS) also found the legislative body to be the most corrupt, followed by the Tax Office and the police.

The Government Financial Report has been getting an unqualified opinion since 2009. Between 2004 until 2008, the BPK issued disclaimer for the reports.

In the current report, the number or agencies with qualified opinion increased to 22 from 18 last year. The agencies include the Agriculture Ministry, the Education and Culture Ministry and the Tourism and Creative Economy Ministry.

The BPK issued a disclaimer for the Food and Drug Monitoring Agency (BPOM) and Sabang Port Free Trade Agency (BPKS) in its current report.

In spite of the good performance among government agencies, Hadi said problems remain.

Hadi said that the BPK discovered irregularities, totalling Rp 1.91 trillion, in the 2012 social aid fund, which is now being kept in undisclosed bank accounts.

The BPK also found that Rp 269.98 billion of the Rp 75.6 trillion did not reach its target.

Hadi said that the government had been unable to recover Rp 8.79 trillion assets belonging to the former Indonesia Bank Restructuring Agency (BPPN). (nai)

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