Bank Bali confident of funds return<\/p>\n
JAKARTA (JP): Head of Bank Bali's new management team, Douglas
\nBeckett, said on Wednesday that a little more than half of the Rp
\n546 billion (US$74 million) funds missing from the bank were
\nreturned as of Wednesday.<\/p>\n
He said that some Rp 287 billion was placed in an escrow
\naccount with Bank Bali and of that total Rp 112 billion was
\ntransferred through Bank BNI on Monday and another Rp 175 billion
\nthrough Bank Lippo on Tuesday.<\/p>\n
"But we're confident that all the money will be returned this
\nweek," Beckett said at a media conference.<\/p>\n
Beckett is a banker assigned by U.K.-based Standard Chartered
\nBank to lead the new management team of Bank Bali since July 26.
\nThe British bank was given management control by IBRA as part of
\nan agreement to purchase a 20 percent stake in Bank Bali.<\/p>\n
Standard Chartered found out on July 20 that some Rp 546
\nbillion was missing from Bank Bali through questionable transfers
\nwhich were later linked with a trading and investment company
\nheaded by the vice treasurer of the ruling Golkar Party.<\/p>\n
Banking law expert Pradjoto revealed the controversial
\ntransaction to the media late last month, saying that the money
\nwas used as a commission for PT Era Giat Prima (EGP) for its
\nservice to help the bank recoup some Rp 904 billion in interbank
\nclaims on closed-down Bank BDNI which were guaranteed by the
\nIndonesian Bank Restructuring Agency (IBRA).<\/p>\n
EGP is a company owned by businessmen Djoko Chandra and Setya
\nNovanto, who are linked to the ruling Golkar Party, raising
\nspeculation that part of the money was used to secure election of
\nPresident B.J. Habibie in November.<\/p>\n
Former Bank Bali president Rudy Ramli, IBRA deputy chairman
\nPande Lubis and several high-ranking government officials close
\nto President B.J. Habibie were implicated in the scandal.<\/p>\n
Head of the Supreme Advisory Council (DPA), A.A. Baramuli, who
\nwas also believed to be involved in the scandal, said last week
\nthat Setya would return the missing funds in full on Monday.<\/p>\n
But Bank Indonesia Governor Sjahril Sabirin said on Tuesday
\nthat only some of the money was returned. He said the rest would
\nbe returned on Wednesday.<\/p>\n
The pledge to return the missing funds does not, however,
\nassuage the public's demand for a thorough investigation and to
\ntake the "real" culprits to court.<\/p>\n
When asked to comment on this, Sjahril said on Wednesday that
\nthe main concern of the country's banking authority was how to
\ncollect the missing funds.<\/p>\n
Sjahril said that the central bank and the Ministry of Finance
\nwould ask for the advice of the Attorney General concerning the
\npossibility of taking legal action against those involved in the
\nirregular deal.<\/p>\n
In a related development, the National Police summoned Rudy
\nRamli for questioning on Wednesday.<\/p>\n
Rudy and four other Bank Bali senior executives have been
\nnamed as suspects by the police in addition to EGP's Setya and
\nDjoko.<\/p>\n
Police spokesman Togar Sianipar said that Djoko would be
\nsummoned on Friday.<\/p>\n
But sources said that the police found difficulties in
\nsummoning Setya because he was also a member of the People's
\nConsultative Assembly.<\/p>\n
IBRA deputy chairman Farid Harianto said on Monday that Rudy
\nwas also "indicated" to have quietly sold some $130 million of
\nBank Bali's loan portfolio assets which might increase the
\nrecapitalization cost of the bank.<\/p>\n
Farid said that Standard Chartered informed the agency about
\nthe indication on July 20.<\/p>\n
In its letter to IBRA, a copy of which was obtained by the
\nJakarta Post, Standard Chartered informed the agency of
\nquestionable transactions at Bank Bali, in addition to the
\nmissing funds of Rp 546 billion.<\/p>\n
"We are aware that late last week, Bank Bali, through Price
\nWaterhouse Cooper, has attempted to sell a package of loans in
\nSingapore. A significant number of loans listed for sale were
\nclassified as category 5 (bad loans). The total size of the
\npackage of outstanding principal and accrued interest is $132
\nmillion," the letter dated July 20 said.<\/p>\n
Category 5 loans are nonperforming loans (NPLs) which should
\nbe transferred to IBRA. Whatever IBRA can eventually recover from
\nthe bad loans would be used to help finance the government's
\ncontribution to recapitalize the bank.<\/p>\n
Farid said that an audit process was still underway to verify
\nthe asset sale indication.<\/p>\n
Meanwhile, Beckett also said on Wednesday that Standard
\nChartered would not withdraw its plans to enter Bank Bali despite
\nthe scandal.<\/p>\n
IBRA chairman Glenn S. Yusuf said the government would not
\ncover the missing funds.<\/p>\n
He said that if the money was not fully returned, Bank Bali
\nmight have to operate with a capital adequacy ratio (CAR) of less
\nthan the required 4 percent level.<\/p>\n
Separately, chairman of the Indonesian Capital Market
\nSupervisory Agency (Bapepam), Jusuf Anwar, said on Wednesday that
\nthe agency formed a special team to investigate possible insider
\ntrading in the shares of publicly listed Bank Bali prior to the
\nnationalization of the bank on July 23. (rei\/prb\/emf\/ylt\/udi)<\/p>",
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