80 BI officials to be questioned over scam<\/p>\n
JAKARTA (JP): Bank Indonesia senior deputy governor Anwar
\nNasution said on Friday that 80 central bank officials will be
\nquestioned over a possible involvement in fraud related to the
\ndisbursement of massive government liquidity supports to
\ncommercial banks between 1998 and 1999.<\/p>\n
\"There are many ... I think about 80 (officials) have been
\nmentioned (by the Attorney General's Office),\" Anwar told
\nreporters in response to a question about whether one of the
\ncentral bank's deputy governors would be summoned by the Attorney
\nGeneral over the alleged wrongdoing.<\/p>\n
Anwar said that the officials included some who had already
\nretired. But he said that this (investigation) did not
\nnecessarily mean that the officials were involved in the fraud.<\/p>\n
Anwar said that it was up to the legal authorities to decide
\non the extent of their involvement.<\/p>\n
The government, via Bank Indonesia, disbursed around Rp 144.5
\ntrillion (US$17 billion) in emergency loans to 48 commercial
\nbanks to support them during massive bank runs as confidence in
\nthe industry tumbled during the peak of the country's financial
\ncrisis.<\/p>\n
But the Supreme Audit Agency (BPK) said in its recent
\ninvestigational audit that around Rp 138.4 trillion of the loans
\nhad been misused or were extended in violation of bank
\nregulations.<\/p>\n
BPK said the emergency loans were supposed to be used only to
\nreimburse depositors during the massive runs, but many of the
\nbanks used the funds for currency speculation, lending to
\naffiliated business groups or repaying the loans of subsidiaries.<\/p>\n
BPK also blamed the central bank's weak supervision for the
\nwidespread misuse of the emergency credits.<\/p>\n
Finance Minister Bambang Sudibyo said earlier this week that
\nhe would immediately request the Attorney General's Office impose
\na travel ban on the former owners and management of the some of
\nthe commercial banks to facilitate the investigation.<\/p>\n
BPK chief Satrio B. Joedono has said that he had given the
\nlist of bankers and bank owners that should be banned from
\ntraveling out of the country to the Finance Minister, but it was
\nnot clear why Bambang had not yet announced the travel bans.<\/p>\n
There have been rumors that two Bank Indonesia deputy
\ngovernors were planning to resign due the allegations.<\/p>\n
Anwar said that he had not received any resignation letters,
\nbut he believed that any officials alleged of wrongdoing should
\ntemporarily leave their post to facilitate the investigation.<\/p>\n
Sjahril<\/p>\n
Separately, the Attorney General's Office announced Friday
\nthat it had extended the detention of Bank Indonesia Governor
\nSjahril Sabirin for another 20 days to continue investigation of
\nhis alleged involvement in the high profile Bank Bali scandal.<\/p>\n
Attorney General's Office spokesman Yushar Yahya said that
\nthere should be sufficient evidence to bring Sjahril to court by
\nthe end of this month.<\/p>\n
Sjahril's detention was supposed to end today (Saturday).<\/p>\n
The Bank Bali scandal centers on the illegal transfer of some
\nUS$80 million from the bank to a private firm linked to the
\nGolkar Party. The scandal contributed to the failure of former
\npresident B.J. Habibie to be reelected in last year's general
\nelection.<\/p>\n
Asked to comment on the extension of Sjahril's detention,
\nAnwar said that he expected a speedy and fair resolution to the
\ncase.<\/p>\n
He said that many people including some from overseas have
\nexpressed concern over the detention of Sjahril.<\/p>\n
\"We feel very sad because our governor is being detained. We
\nhope this can be settled quickly and fairly,\" Anwar added.<\/p>\n
The Attorney General's Office detained Sjahril on June 21
\nfollowing months of high profile quarrels with President
\nAbdurrahman Wahid over various issues. (rei\/bby)<\/p>",
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