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Corruption Trail Revealed in Indonesian Government’s ‘Lost’ $1 Billion
Dion Bisara | October 13, 2010

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Roland
11:03pm Oct 14, 2010

It's basically the same amount over all these years since Dictator (and definitely not national hero) Suharto came to power. He was alleged to have channeled between $30 - 35 Billion(!)during his reign into his private pockets (yeah sure - he developed the country - I can't hear that anymore...). He was around 30 years in power so approx. $1 Billion p/a.

So now it is discovered that the state still loses around $1 Billion p/a - no real surprise there.

The fight against corruption were just words good during election periods and nothing else. Who of the elites really want to lose part of their income for something annoying as honesty! And still, graft convicts are getting the easiest sentences, like Mr. Sjahril Djohan for example. Of course, because prosecution and judges are part of the brotherhood and everybody is scratching the others back - what happens with the country and its people is not important at all!

It stinks to heaven...

padt
8:10am Oct 13, 2010

Indonesia may well be on the road to financial bankruptsy - but it is already morally bankrupt.

A housewife said to me a few days ago - "At least under Suharto we knew it was him and his family and friends who were corrupt - but now, everyone is in on the game. But what can we do about it? We feel powerless."

That lady can't change Indonesia. I can't change Indonesia. We can only change ourselves. We all need to learn how to think differently. And that is the hardest challenge facing this country - changing the way it thinks.


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Jakarta. Despite the central government’s efforts to foster improved governance, the state lost about $1 billion last year due to misspent or misappropriated budget allocations, the Supreme Audit Agency reported on Tuesday. 

Hadi Poernomo, chairman of the agency, known as the BPK, told a plenary session of the House of Representatives that it had uncovered losses of Rp 9.55 trillion in the financial reports of ministries, state agencies, local governments and state-owned enterprises during the 2009 fiscal year.

Hadi said the results offered clear indications of widespread corruption, and demonstrated the weak internal supervision of government spending and non-compliance with regulations.

Most of the lost money — Rp 4.98 trillion — was channeled through central government ministries and state agencies, and only Rp 40 billion has been returned.

The BPK had for five consecutive years issued a disclaimer on government financial reports, meaning too much data was unclear or missing.

The 2009 reports, in which the $1 billion in losses was discovered, were the first to have all data considered valid.

In citing examples of malfeasance, Hadi pointed to Public Works Ministry, which he said had overpaid contracted consultants by  Rp 4.46 billion.

In addition, the price of a Finance Ministry tax office building in Kotamabagu, North Sulawesi, had been marked up by Rp 2.98 billion. 

“We also found a false travel expense document in the Home Affairs Ministry that potentially cost the state Rp 1.57 billion,” he said.

Hadi said budget losses in regional and local governments totaled Rp 3.55 trillion, of which only Rp 38.22 billion had been returned.

Some of the unauthorized spending included Rp 6.92 billion on personnel at the Manado municipal government and a Rp 5.24 billion markup in the procurement of health care equipment for the Banten provincial government. 

Arif Nur Alam, coordinator of the Indonesia Budget Center, said the BPK report should be a wake-up call for the government to take stronger measures in budget planning and spending. 

“President Yudhoyono should use this report to evaluate the ministries, make sure that they use the budget for people’s welfare,” he said.

Arif pointed to the Home Affairs Ministry’s travel budget as a common example of graft.

“The report only strengthens people’s perception that official travel, whatever they tag it, does not serve the needs of the people at all. Their travel is only for their own interests,” he said.

Harry Azhar Azis, deputy chairman of House Commission XI, which oversees financial affairs, said the government should follow up on the BPK report and try to recover as much of the lost money as possible.

“The BPK in the future should not only report the losses, but how much can be recovered as well.”

Harry noted that while some of the losses were certainly due to corruption, others might be a result of simple incompetence.