AGO to probe bad debtors linked with govt officials<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Stepping up their investigations into the alleged lending scandal
\nat state Bank Mandiri, prosecutors plan to probe a number of bad
\ndebtors who have links with top government officials.<\/p>\n
Deputy attorney general for fraud Hendarman Supandji said on
\nWednesday the Attorney General's Office (AGO) would probe more
\nfirms related to the alleged lending irregularities at the
\nnation's largest bank, including those having links with high-
\nprofile figures.<\/p>\n
\"We are not afraid of probing them (firms linked with
\ngovernment officials). The President's instruction is clear that
\nwe should investigate this case thoroughly,\" said Hendarman at
\nthe State Palace.<\/p>\n
Attorney General Mochammad Abdurrahman Saleh refused to
\ncomment further on the case, saying he had ordered Hendarman to
\nresolve the case within three months.<\/p>\n
The AGO opened an investigation into the Mandiri last month
\nafter the Supreme Audit Agency (BPK) released the results of its
\n2004 audit of the bank.<\/p>\n
Prosecutors say they are investigating alleged irregularities
\nin the bank's lending practices.<\/p>\n
Prosecutors have summoned top Bank Mandiri officials for
\nquestioning, including the bank's president ECW Neloe, but have
\nnot named any of these officials suspects in the case.<\/p>\n
Hendarman said the AGO had not discriminated between
\nindividuals when investigating the case.<\/p>\n
\"There is no discrimination in the investigations. Companies
\nlinked with the current administration will also be probed. I
\nhave received no pressure from any senior government official
\nwhen doing my job,\" he said.<\/p>\n
The AGO is currently focusing its probe on loans worth Rp 1
\ntrillion (about US$105 million) given to five companies -- PT
\nSiak Zamrud Pusaka, PT Citra Graha Nusantara\/Tahta Medan, PT
\nLativi Media Karya and PT Artha Bhama Texindo\/Artha Tri Mustika
\nTexindo.<\/p>\n
The five are among 28 companies reported by the Supreme Audit
\nAgency (BPK) to have allegedly received loans from Bank Mandiri
\nworth more than Rp 12 trillion without proper lending procedures.<\/p>\n
According to the BPK report, cement maker PT Semen Bosowa
\nMaros and coal producer PT Arutmin Indonesia are among the 28
\ncompanies.<\/p>\n
Semen Bosowa is owned by the nephew of Vice President Jusuf
\nKalla, while Arutmin has a close links with Coordinating Minister
\nfor the Economy Aburizal Bakrie.<\/p>\n
Kalla and Aburizal acknowledged that they had an indirect link
\nwith the companies but insisted the companies would have no
\nproblems servicing their loans.<\/p>\n
Based on the report, Bosowa has some Rp 1.44 trillion of debts
\nin Bank Mandiri classed in \"level 2\" debt category, while Arutmin
\nhas some US$88 million \"level 1\" debts.<\/p>\n
Both categories mean the companies have no serious
\ndifficulties servicing the loans. A level 5 loan is categorized
\nas a bad debt.<\/p>\n
Hendarman said the prosecutors would expand the investigation
\nto look at such companies during its meeting with the BPK
\nscheduled on Monday, with the agency pledging to submit detailed
\ncase files about the remaining 23 companies to the AGO.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ago-to-probe-bad-debtors-linked-with-govt-officials-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}