Anwar called on to clean BI of corrupt practices<\/p>\n
JAKARTA (JP): Bank Indonesia senior deputy governor Anwar
\nNasution must act immediately to eliminate corruption from the
\ncentral bank to make its monetary policy credible, according to a
\ngroup of former Bank Indonesia employees.<\/p>\n
Former Bank Indonesia deputy director Darryl Dewantoro,
\nspokesman for the group, said on Saturday that last week's arrest
\nand subsequent removal of Sjahril Sabirin from Bank Indonesia did
\nnot automatically make the central bank free of corrupt
\npractices.<\/p>\n
"Anwar must act now to clean up Bank Indonesia," Darryl told a
\nnews conference.<\/p>\n
"He once said that Bank Indonesia was a den of thieves, so
\nthere must be concrete action from Anwar to amend the internal
\ncondition of the central bank," he added.<\/p>\n
He said that reshuffling central bank senior staff should be a
\npriority.<\/p>\n
Darryl said that if housecleaning within the central bank was
\neffectively communicated, the market would ignore the current
\npolitical trouble undermining the bank.<\/p>\n
He explained that Bank Indonesia should have been cleaned up
\nprior to making it an independent institution to smoothen efforts
\nto curb corruption at the bank.<\/p>\n
Anwar was appointed to temporarily lead Bank Indonesia after
\nthe attorney general detained Governor Sjahril on Wednesday for
\nhis alleged role in the high profile Bank Bali scandal.<\/p>\n
Sjahril has denied any involvement, and claims the move to
\nname him a suspect and his subsequent detention are part of a
\npolitical ploy by President Abdurrahman Wahid to oust him from
\nBank Indonesia, which according to law should be free from
\ngovernment intervention.<\/p>\n
The Bank Bali scam, which emerged last year, revolves around
\nthe questionable transfer of some US$80 million from the bank to
\na private firm linked to the then ruling Golkar Party ahead of a
\ncrucial general election.<\/p>\n
The detention of Sjahril has been strongly criticized by
\nseveral leading political figures, including House of
\nRepresentatives Speaker Akbar Tandjung and People's Consultative
\nAssembly Speaker Amien Rais.<\/p>\n
Amien said the detention amounted to political intervention in
\nthe affairs of the central bank.<\/p>\n
Akbar said the move would affect efforts to improve the
\ncountry's economy.<\/p>\n
The rupiah closed lower on Wednesday and Thursday, but
\nslightly strengthened to Rp 8,685 on Friday. The local unit has
\nbeen under strong pressure since early May due to a combination
\nof political and social problems at home, and concern over slow
\nprogress in implementing economic reform programs.<\/p>\n
Some analysts have said that Abdurrahman has been trying hard
\nto remove high level people linked to the former authoritarian
\npresident Soeharto from the government and key state institutions
\nincluding the central bank.<\/p>\n
Sjahril was first appointed by Soeharto as Bank Indonesia
\nGovernor in 1998, and was reappointed in May 1999 for a four-year
\nterm by the House of Representatives following the approval of
\nthe new law on the independency of Bank Indonesia.<\/p>\n
A PriceWaterhouseCoopers audit result submitted to the House
\nsays there are indications that Sjahril was involved in the Bank
\nBali scandal.<\/p>\n
But Abdurrahman has faced difficulty ousting Sjahril from Bank
\nIndonesia, particularly due to its independency status which
\ndoes not allow politicians to intervene in central bank matters.<\/p>\n
Abdurrahman drew strong criticism after Sjahril revealed to
\nthe media that the former had repeatedly offered him an
\nambassadorial post, implying he would not be implicated in the
\nBank Bali scandal if he resigned from Bank Indonesia.<\/p>\n
Sjahril rejected the offer.<\/p>\n
Under the new Bank Indonesia law, members of the board of
\ngovernors cannot be dismissed by the president or even the House
\nunless he or she is proven to have committed a crime or is
\nincapacitated. (rei)<\/p>",
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"sponsor": "Okusi Associates",
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