Australian firm to help BI audit<\/p>\n
JAKARTA (JP): Supreme Audit Agency (BPK) head Satrio B. Yudono
\nsaid on Thursday he would ask Australia-based
\nPricewaterhouseCoopers to help the agency audit the central bank
\nover the high-profile Bank Bali scandal.<\/p>\n
However, Yudono said the audit would focus on the government's
\nblanket guarantee program for interbank claims in an effort to
\nprevent a similar incident in the future.<\/p>\n
"We are inviting (PricewaterhouseCoopers to help with the
\naudit) in order to resolve the case once and for all," he told
\nreporters after meeting with President B.J. Habibie.<\/p>\n
"But the important thing is to focus on the system ... to know
\nwhat needs to be modified, without getting carried away with the
\npolitical aspects of the case. We have to be careful," he said.<\/p>\n
The narrowly focused audit described by Yudono appears to be a
\nfar cry from the comprehensive audit demanded by the public, the
\nHouse of Representatives and the international community.<\/p>\n
According to the new central bank law, Bank Indonesia can only
\nbe audited by BPK. However, the agency can ask for the assistance
\nof an external auditor.<\/p>\n
The law also stipulates that the House can request BPK conduct
\na special audit of Bank Indonesia.<\/p>\n
The House formally made such a request on Thursday, asking BPK
\nto audit the central bank over the Bank Bali scandal.<\/p>\n
The head of House Commission VIII for finance and banking,
\nTayo Tarmadi, said BPK was expected to complete its audit by the
\nend of August.<\/p>\n
"We want the audit to be completed by Aug. 31," he said
\nfollowing a meeting with House leaders.<\/p>\n
Tayo insisted the BPK audit must not simply focus on the
\ngovernment's interbank claims guarantee system, but check the
\ntransfer of funds from Bank Indonesia to Bank Bali, and the flow
\nof funds from Bank Bali to other bank accounts.<\/p>\n
Minister\/State Secretary Muladi said the BPK and
\nPricewaterhouseCoopers audit would be completed on Sept. 7.<\/p>\n
It was the International Monetary Fund (IMF) which first
\ndemanded the central bank be audited by PricewaterhouseCoopers.<\/p>\n
IMF deputy managing director Stanley Fischer asked the
\ngovernment on Aug. 17 to widen the scope of
\nPricewaterhouseCoopers' investigation into the Indonesian Bank
\nRestructuring Agency (IBRA) to include Bank Indonesia.<\/p>\n
The IMF demanded a probe into Bank Indonesia's role in the
\nBank Bali case, as well as an investigation into the flow of
\nfunds from Bank Bali to other bank accounts.<\/p>\n
IMF Asia Pacific director Hubert Neiss reiterated on Thursday
\nthat a speedy and satisfactory resolution of the Bank Bali case
\nwas crucial to restoring confidence in the economy and preventing
\nthe country's bank restructuring program from faltering.<\/p>\n
Neiss was speaking to reporters after meeting with Habibie.<\/p>\n
The scandal centers on the transfer of Rp 546 billion (almost
\nUS$80 million) from Bank Bali to PT Era Giat Prima (EGP) in June.
\nThe money was a commission for the company's aid in helping Bank
\nBali recoup interbank claims from closed Bank Dagang Negara
\nIndonesia (BDNI).<\/p>\n
IBRA has faulted the bank for using EGP because the interbank
\nclaims were assured through the government's blanket guarantee
\nprogram. The transfer of funds from Bank Bali would have
\nincreased the cost to the state budget for recapitalizing the
\nbank.<\/p>\n
Indonesian banking authorities have said the payment of the
\ninterbank claims to Bank Bali were made according to existing
\nprocedures. IBRA said the interbank claims were verified by Bank
\nIndonesia.<\/p>\n
There have been allegations influential people close to
\nPresident Habibie "forced" former Bank Bali president Rudy Ramli
\nto hire EGP as part of an effort to raise funds to finance
\nHabibie's presidential bid.<\/p>\n
EGP is a general trading company owned by businessmen linked
\nto the ruling Golkar Party, which has named Habibie its
\npresidential candidate.<\/p>\n
Bank Indonesia deputy governor Subarjo Joyosumarto said on
\nThursday a crime was committed in the Bank Bali case, the first
\nsuch official acknowledgement since the scandal broke in late-
\nJuly.<\/p>\n
"We have just given the police the results of BI's
\ninvestigation into the Bank Bali case, in which a banking crime
\nwas committed," Subarjo said after meeting with officers from the
\nNational Police and officials from the Attorney General's Office.<\/p>\n
Subarjo said the failure to report the payment to EGP to
\nbanking authorities was evidence of a violation of banking laws
\nby Bank Bali's management.<\/p>\n
In a related development, National Police chief Gen.
\nRoesmanhadi said on Thursday the police obtained permission from
\nthe President to question EGP president Setya Novanto as a
\nsuspect in the case. As a member of the People's Consultative
\nAssembly, Setya can only be questioned with the prior consent of
\nthe President. (rei\/prb)<\/p>",
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