Basuki Tears Into BPK for Unfavorable Audit Assessment on Jakarta
Jakarta. The Supreme Audit Agency on Wednesday defended its decision not to provide a clean bill of health for the Jakarta administration’s finances, despite the governor’s outrage.
Governor Basuki Tjahaja Purnama, known for his brash and outspoken brand of leadership, expressed his displeasure of the agency, known as the BPK, when it passed a "reasonable with exceptions" assessments of the capital’s financial report. The grade suggests that discrepancies had been found in Jakarta's finances.
BPK spokesman Yudi Ramdan said the agency had decided not to give City Hall the passing "reasonable without exceptions" grade because of "matters from previous years that are connected to [current] assets and operational expenses and remain unresolved."
BPK found four "exceptions" to an otherwise sound financial statement prepared by Basuki's administration, he said, adding that irregularities ranging from discrepancies to administrative violations were present in matters related to asset management, operational spending and capital injections.
The governor lambasted the report, considering it a personal attack on how he runs the capital.
Basuki hit back at the BPK, questioning the agency's methods in conducting its audit, accusing some BPK members of refusing to declare their wealth. He demanded to know why the BPK had passed corrupt administrations, but failed those who are clean.
“I told them to take a look at Banten. [The administration] was given a 'reasonable without exception' grade despite the corruption case involving health equipment and the fact that the governor is in jail. So what has the BPK been doing with its audits?” he said.
Basuki was referring to former Banten governor Ratu Atut Chosiyah who is now serving a four-year prison sentence for bribing a top judge in exchange for a favorable ruling. Atut has also been questioned in a second graft case involving the procurement of health equipment between 2011 and 2013, which allegedly caused state losses of over Rp 30 billion ($2.24 million).
The BPK gave Atut a clean bill of financial health in 2013. She was arrested a year later.
The Jakarta governor also questioned BPK objections over the city's purchase of a piece of land in Tomang, West Jakarta, that was earmarked for a hospital. Auditors had argued the asset was Rp 191 billion overpriced — a claim Basuki rejected
“Overpriced how?” he said. “[The BPK] said it was more than what was appraised. Well, property prices go up.”
The audit agency had reportedly told Basuki that he should have purchased the asset according to its taxable value (NJOP) for the area, showing the governor the NJOP for North Tomang — which, although located behind the hospital, has little access to the major street on which the facility is located.
“Tomang is a housing area. Of course [the NJOP] would be different,” he said.
Basuki further declared he felt insulted by BPK's insinuation that his administration's finances are in a sorrier state than those of Atut or his own predecessor Fauzi Bowo, both of which passed their audits..
He then demanded answers for why the agency never objected the procurement of uninterruptible power supply devices for schools across the capital last year. The machines had been purchased at prices up to 100 times their retail worth.
“I want to challenge the BPK officials. Can they say how much they are paying in taxes? How much are their assets worth? How much are they spending? If they can’t explain where the money is from, they can’t audit others,” Basuki said.
“I will do a bit of auditing myself. I want to see which provinces passed their audits and whether leaders of those of regions are in jail.”
BPK member Achsanul Qosasi said his agency has decided “not to respond [...] to harsh and rude comments" made by the Jakarta governor.
“We must respect each other’s roles and functions as public officials. We hope [Basuki] can contain himself whenever he encounters matters that do not please him.”
The Corruption Eradication Commission (KPK), however, agreed with the governor, conceding that it, too, saw inconsistencies in how the BPK issued its assessments.
The KPK in 2012 arrested the former mayor of Bekasi, West Java, Mochtar Mohammad, for providing Rp 400 million in bribes to BPK officials in exchange for providing a passing grade on the city’s financial statements.
The KPK has also arrested several BPK officials for accepting bribes on separate cases.
The anti-graft body also noted that aside from Achsanul and Agung Firman Sampurna, BPK commissioners have not updated their wealth reports.
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