Govt slapped on wrist by BPK, again

The Jakarta Post, Jakarta

The Supreme Audit Agency (BPK) has entered a disclaimer to the government's 2006 budget accounts for the third consecutive year, and will continue to do so until it is allowed to directly audit the tax service.

Inadequate regulations and incompatible infrastructure had lead to another disclaimer this year, BPK chairman Anwar Nasution said Tuesday after submitting the agency's findings to a House of Representatives' plenary session.

"The inadequate accounting system, incompatible IT systems, the absence of a single treasury account, and disorder in the collection of non-tax revenue have forced the BPK to enter a disclaimer," he told reporters.

The BPK has done so three times in a row since the coming into effect of the 2003 State Finances Law, 2004 State Treasury Law and 2004 State Expenditure Law, which Anwar said had largely resulted in the mushrooming of secretive ministerial accounts.

Regarding this issue, BPK in 2004 found 964 unreported government-related bank accounts -- mostly escrow accounts -- containing Rp 26.25 trillion (US$2.95 billion). The number rose in 2005 to 1,303 accounts containing Rp 8.5 trillion, and to 2,423 accounts containing Rp 2.7 trillion in 2006.

The government, through the Finance Ministry, has also traced 2,169 dubious accounts holding Rp 9.12 trillion as of Feb. 28 this year, adding to the accounts already discovered by the BPK.

Anwar said the BPK might have to continuing entering disclaimers on the government's accounts in the years to come should the rules prohibiting it from auditing the tax service continue.

"Indonesia is one of the few countries in the world that does not allow its official auditor to audit the tax service. It's a completely untenable situation," said Anwar.

"The taxpayers must know what their money is being used for."

Under current regulations, the BPK is required to get the Finance Ministry's approval should it want to audit the tax service.

"The ministry, however, never gives its approval, claiming that approval can only be given for audits of the tax affairs of people believed to be implicated in crime," he explained.