Bapindo would have collapsed: BI official<\/p>\n
JAKARTA (JP): The huge financial losses incurred by Bapindo
\nfrom its transactions with Eddy Tansil destroyed the state-owned
\nbank -- or would have, according to a bank executive, if it
\nhadn't been for a government bail out.<\/p>\n
Antony M.T. Siregar, supervisor of state banks at Bank
\nIndonesia, told a court hearing trying the case of Tansil,
\nyesterday, that the government injected fresh money to cover the
\nhuge losses resulting from a series of non-performing loans
\nextended to Tansil's Golden Key Group.<\/p>\n
\"If the government had not come to the aid of (Bapindo), it
\nwould certainly have collapsed. If that had happened, it would
\nhave disrupted the government's development programs,\" Antony
\ntold the hearing at the Central Jakarta District Court.<\/p>\n
When asked how much money the government injected to Bapindo,
\nSiregar declined to give any detailed figures, saying he did not
\nknow the exact number. \"I don't know exactly, but it must have
\ncovered the loses,\" he said.<\/p>\n
Earlier court testimony suggested that Bapindo's losses amount
\nto over Rp 1.05 trillion ($490 million), including interest
\nearnings and discounts offered on bankers acceptances.<\/p>\n
Siregar said he was involved in the central bank investigation
\nof how Bapindo could have extended the loans to Tansil without
\ngoing through routine scrutiny.<\/p>\n
The investigation found that Bapindo had been careless, he
\nsaid. \"Bapindo began to disburse the loans although Tansil had
\nnot yet signed a credit agreement,\" he said. \"You couldn't call
\nit credit. It was an abnormal facility.\"<\/p>\n
Dariyanto H.K. of the BPKP, the government audit agency, gave
\ntestimony that Bapindo has already had to honor some $338 million
\nworth of banker's acceptances issued by Tansil and some $104
\nmillion more that will mature in August.<\/p>\n
Dariyanto said a large sum of the money extended to Tansil
\ncould not be traced since it had gone into various bank accounts
\nor used for his private interests. Some had also been transferred
\nto the accounts of Tansil's relatives, he said.<\/p>\n
Rus Handoko of BDN, another state bank, said his bank pulled
\nout of a loan syndication for Tansil because of indications of
\nirregularities in the way the loans had been disbursed. (11)<\/p>",
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