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Auditors Hint at Foul Play Inside University of Indonesia
Markus Junianto Sihaloho | January 20, 2012

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zerodiversity
11:08am Jan 20, 2012

How can we teach the future generation about staying clean, corruption free if one of the top universities in Indonesia itself has corruption problem as well as poor financial management? All the staff members of the school should go through accounting classes


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The Supreme Audit Agency said on Thursday that there were indications of illegal activities, poor financial management and abuse of power inside Indonesia’s most prestigious university, resulting in potential state losses of Rp 45 billion ($5 million).

Rizal Djalil, a member of the audit agency, the BPK, met with House of Representatives Deputy Speaker Taufik Kurniawan and presented him the audit of state-owned University of Indonesia.

The BPK cited two cases where the university had allegedly mismanaged its funds and assets, both under the management of the current rector, Gumilar Soemantri.

“We cannot let a university, a symbol of intellectualism and morality, get away with such carelessness,” Rizal said.

The first case involves 23,583 square meters of land on Jalan Pegangsaan Timur in Central Jakarta that is managed by the University but formally owned by the government.

The BPK, Rizal said, had found that the university had leased the state property to an undisclosed third party last year.

He said the university had received a down payment of Rp 15 billion from the third party, and was due to receive Rp 607 million annually for the next 25 years.

“The Finance Ministry had no knowledge of this deal,” he said, adding that the university had violated two governmental regulations in the deal.

The Finance Ministry oversees the management of all state assets in Indonesia.

Rizal said the second case involved the construction of the Education Hospital at the university’s Depok campus. The construction was financed by loans from the Japan International Cooperation Agency.

After the project fell behind schedule and found itself over budget, the government was forced to pay 38.5 million yen ($500,000) to the JICA for breach of contract.

Taufik said the House would discuss the findings internally before making any decision.

“For the time being we are urging law enforcers to act on [the BPK] report by conducting an investigation,” the National Mandate Party (PAN) lawmaker said.

The BPK findings only add to longstanding allegations of corruption inside the university during Gumilar’s tenure.

In November, an organization called Save UI submitted a report to the Corruption Eradication Commisson (KPK) outlining what it said were instances of graft in the university.

Gumilar has said the university manages its funds professionally and transparently, and is ready to be audited by outside bodies.




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