T

he city administration has not yet repaid '€œpotential state losses'€ worth around Rp 10 trillion (US$750 million) accumulated from the Supreme Audit Agency'€™s (BPK) investigative audit reports from 2004 to 2014, City Secretary Saefullah said Tuesday.

Saefullah said the potential state losses were caused by administrative glitches or claims for damages (TGR) resulting from negligence or illegal activities by officials.

'€œTherefore, starting from 2015, all findings in the form of potential state losses should be returned immediately by working units and agencies [to the Finance Ministry],'€ he said.

Saefullah said the losses had brought down the city'€™s result in the BPK'€™s annual audit report. '€œThis is one of the reasons that we got a WDP,'€ he said, referring to the score of '€œReasonable with Exception'€, which is one level lower than the highest score, Reasonable without Exception (WTP).

The secretary said that all related agencies should immediately prepare an action plan to incrementally pay for the loss. '€œWe have the information of the names of the officials and the year, these people will not be promoted,'€ he said.

BPK recorded that the Jakarta administration had potentially caused state losses of Rp 1.54 trillion in 2013 and Rp 3.58 trillion 2014.

In 2013, potential state losses came from various projects, including the manipulation of official relief letters (SKTM) for the Education Operational Aid (BOP) and the Transjakarta bus procurement project.

Among other sources, potential state losses in 2014 came from the controversial and politicized Sumber Waras Hospital land procurement project in West Jakarta. BPK recorded that the state potentially lost around Rp 191 billion because of the difference in table value of property (NJOP) determined by the city administration and BPK.

Saefullah said potential state losses caused by City Council members were even more complicated.

'€œIt is related to allowances or honoraria in 2004 and 2005. I have asked the City Council secretary to resolve the problem. However, some of the related members have died or are no longer active members,'€ he said.

Saefullah said that he would try to investigate all potential state losses in the 10-year period. '€œIf it is no longer possible to be traced back, I will ask BPK to scrap them,'€ he said.

He said that he would ensure that all lists would be cleared annually, so the city would not have a bad record.

City Inspectorate General Meri Erna Hani said that her institution recorded that the five biggest potential state losses, which totaled Rp 850.7 billion, for 2014 came from the transportation agency with Rp 274.3 billion, the education agency with Rp 227.6 billion, the health agency with Rp 194.5 billion, the asset and financial management body with Rp 106.5 billion and city-owned market operator PD Pasar Jaya with Rp 47.8 billion.

Meri said that the inspectorate had been asking for working units and agencies to give back the money but realization remained low.

'€œWe will cooperate with the TGR tribunal,'€ she said referring to the group manned by top city officials to question officials suspected of causing state losses.

Meri added that it was hard for the inspectorate to solve the problem as the BPK sometimes did not mention the name of the officials.

'€œThey only mention the institution because their aim is to educate bureaucrats. If they mention names, it means it will be followed up as criminal cases,'€ she said.

Meri said that she would ask all agencies and working units to make an action plan to return the funds.