ID :
46328
Thu, 02/19/2009 - 00:29
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https://www.oananews.org//node/46328
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RI MUST PAY RP2.02 TRILLION EXTRA DUE TO DEBT MISMANAGEMENT
Jakarta, Feb 18 (ANTARA) - Indonesia is saddled with a debt burden of Rp2.02 trillion merely because of the reckless handling of foreign loans, a Corruption Eradication Commission (KPK) official said.
The finding was the result of an audit on the country's foreign debt by the State Audit Board (BPK), KPK Vice Chairman Haryono said here Wednesday.
The BPK audit was conducted on 66 foreign loan deals worth a total of Rp45.29 trillion to finance projects overseen by nine government ministries/state institutions and eight state-owned companies, he said.
The state had to bear the extra financial burden because the projects failed to be completed in accordance with certain terms in the loan agreements.
"The additinal burden would not have arisen if the projects had been completed on time," he said.
According to the results of the audit on the loan agreements, the Rp2.02 trillion burden consisted of commitment and escalation fees Indonesia had to pay for failing to implement the projects in accordance with the agreemnts. The extra burden was linked to the implementation of 25 projects funded with foreign loans.
Haryono said the results of the BPK audit also brought to light that Rp438.47 billion worth of foreign loans were not used as initially intended, namely to finance nine projects under a number of government institutions.
The failure to use the loans as intended was caused by weaknesses in planning, coordination and monitoring of loan agreements, he said.
In the audit on 66 foreign loan deals the BPK and KPK also found a government bridging loan worth around Rp5.04 billion and US$4.23 million that would possibly not be reimbursed by the creditors.
"This may happen because the needed documents were not complete and certain administrative requirements were not fulfilled," he said.
Regarding the special account to accommodate the government bridging loans, he said there was a balance of around Rp74.34 billion put in 61 accounts.
The accounts were not yet closed although their deadlines had been passed. "Interest on the accounts has continued to be paid until now," he said.
Haryono said that based on the audits, control over state assets procured with foreign laons had also not been exercised properly so far, creating the risk of a loss and asset misuse worth Rp207.79 billion.
He said a number of clauses not required for the deals had also been found which would potentially cause a financial burden of minimally Rp36.38 billion for the state. The clauses included insurance cost, commitment and bank administrative service fees.
The KPK would ask for clarifications from the Finance Ministry, the National Development Planning Board, Bank Indonesia, ministries/state insitutions and a number of state-owned companies linked to the problem.
"We wish these things will not happen again," he said.
He expressed concern over careless management of foreign loans. "It is not impossible that some state funds are still idle," he said.
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The finding was the result of an audit on the country's foreign debt by the State Audit Board (BPK), KPK Vice Chairman Haryono said here Wednesday.
The BPK audit was conducted on 66 foreign loan deals worth a total of Rp45.29 trillion to finance projects overseen by nine government ministries/state institutions and eight state-owned companies, he said.
The state had to bear the extra financial burden because the projects failed to be completed in accordance with certain terms in the loan agreements.
"The additinal burden would not have arisen if the projects had been completed on time," he said.
According to the results of the audit on the loan agreements, the Rp2.02 trillion burden consisted of commitment and escalation fees Indonesia had to pay for failing to implement the projects in accordance with the agreemnts. The extra burden was linked to the implementation of 25 projects funded with foreign loans.
Haryono said the results of the BPK audit also brought to light that Rp438.47 billion worth of foreign loans were not used as initially intended, namely to finance nine projects under a number of government institutions.
The failure to use the loans as intended was caused by weaknesses in planning, coordination and monitoring of loan agreements, he said.
In the audit on 66 foreign loan deals the BPK and KPK also found a government bridging loan worth around Rp5.04 billion and US$4.23 million that would possibly not be reimbursed by the creditors.
"This may happen because the needed documents were not complete and certain administrative requirements were not fulfilled," he said.
Regarding the special account to accommodate the government bridging loans, he said there was a balance of around Rp74.34 billion put in 61 accounts.
The accounts were not yet closed although their deadlines had been passed. "Interest on the accounts has continued to be paid until now," he said.
Haryono said that based on the audits, control over state assets procured with foreign laons had also not been exercised properly so far, creating the risk of a loss and asset misuse worth Rp207.79 billion.
He said a number of clauses not required for the deals had also been found which would potentially cause a financial burden of minimally Rp36.38 billion for the state. The clauses included insurance cost, commitment and bank administrative service fees.
The KPK would ask for clarifications from the Finance Ministry, the National Development Planning Board, Bank Indonesia, ministries/state insitutions and a number of state-owned companies linked to the problem.
"We wish these things will not happen again," he said.
He expressed concern over careless management of foreign loans. "It is not impossible that some state funds are still idle," he said.
***4***
