TEMPO.CO, Jakarta - Being chosen to host an international sport event like the Asian Games 2018 should have been an opportunity to showcase the country's achievements and high potential. But, as has repeatedly happened, this costly event once again became a feeding ground for corrupt officials, brokers and rent-seekers.
With the alleged corruption surfacing during the earlier promotional phase of the event, a myriad of corruption cases involving sport funds previously exposed by the anti-graft agency did not seem to have had any deterrent effect on would-be corruptors. The police recently indicted Dody Iswandy, secretary-general of the local Olympic Committee, for corruption, along with a business partner named Ihwan Agus Salim. Using his authority as a commitment-making official appointed by the Asian Games Indonesia Inaisgoc, Dody allegedly marked up costs for the Road to Asian Games Carnival in Surabaya.
The loss incurred to the state as a result of this alleged crime is estimated to be 'only' Rp1.1 billion, a much smaller amount compared to the funds abused in the construction of the 26th SEA Games sports complex in Palembang in 2011 and also in the 2012 Riau National Sports Week. However, the case now being probed further by the police, may just be a tip of the huge corruption iceberg involving the Asian Games funds.
At least, judging from the Supreme Audit Agency's (BPK) audit on May 28, the misappropriated money below the surface is likely to be much larger. From around Rp200 billion disbursed in 2015 for preparation and training of the athletes, around Rp26.68 billion was found to be unaccounted for. The audit agency detected violations in the bidding, project implementation by third parties (sub-contractors) and payments that were not accompanied by receipts.
Countering the state audit agency's findings, the Youth and Sports Ministry even issued justifications. Promotional activities were expedited soon after receiving the 'yellow light' from the Asian Olympic Council. As the host country, Indonesia was considered lagging behind with the preparation activities. The pretext to safeguard the 'good reputation of the state' should not have been used to sacrifice good financial management principles. Once these principles were compromised, the door of opportunity for other corruptions would open wide.
The chaotic management of the Asian Games funds essentially points to a bad oversight system. As the authorized user, the ministry's secretary should have closely monitored the procurement of goods and services for the event. Instead, as the BPK report clearly showed, the ministry's internal oversight instruments seemed to have malfunctioned.
The ministry should have involved a wider public, including anti-corruption activists, to keep watch on the funds use. The event organizer should give access to the public by establishing a more transparent management system of the funds that not only came from the state budget but also from the private sector.
It is not enough for the ministry to just announce the projects. The details of all the procurements, responsible officials and profiles of tender winning companies must be announced to the public. At the same time, there should be a special reporting channel set up for witnesses or whistleblowers reporting funds abuse. Only a strict oversight system will be able to prevent the feasting frenzy before the party starts. (*)
Read the full story in this week's edition of Tempo English Magazine
