BI audit unlikely, says former director<\/p>\n
JAKARTA (JP): The International Monetary Fund's demand that
\ninternational accounting firm PricewaterhouseCooper be allowed to
\naudit the central bank to resolve the Bank Bali scandal faces a
\n\"procedural\" difficulty, according to an expert.<\/p>\n
Former Bank Indonesia director I Nyoman Moena said on Sunday
\nthat the new independent central bank law stipulates that Bank
\nIndonesia can only be audited by the Supreme Audit Agency (BPK).<\/p>\n
\"The government cannot order an audit into Bank Indonesia,\" he
\ntold the Jakarta Post.<\/p>\n
Moena explained that PricewaterhouseCooper could only audit
\nthe central bank \"if BPK feels it can't do it alone\".<\/p>\n
The House of Representatives could ask BPK to include the
\ninternational auditor in its audit process, he added.<\/p>\n
\"The call to widen the audit into Bank Indonesia is good but
\nit faces a procedural problem,\" he said.<\/p>\n
\"The IMF has called the wrong number,\" he added.<\/p>\n
IMF first deputy managing director Stanley Fischer said in an
\nAug. 17 letter to Coordinating Minister for Economy, Finance and
\nIndustry Ginandjar Kartasasmita that PricewaterhouseCooper should
\nnot limit its audit solely to the Indonesian Bank Restructuring
\nAgency (IBRA), but should include Bank Indonesia to gain all
\nrelevant facts \"necessary to answer the questions that are of
\nserious concern to the government, the public and us.\"<\/p>\n
\"It is of critical importance that the audit's scope be
\nwidened to include Bank Indonesia, which has been in charge of
\nsupervising Bank Bali. In particular, BI's handling of the
\ninitial claim, as well as BI's internal investigation of where
\nthe money went, need to be independently reviewed,\" according to
\na copy of the letter obtained by the Post on Friday.<\/p>\n
The Bank Bali scandal, in which Rp 546 billion (US$75 million)
\nwas quietly transferred out of the bank in June to PT Era Giat
\nPrima, a private firm linked to the ruling Golkar Party, has put
\nthe rupiah and the stock market under pressure and shaken those
\nin the country's political elite allegedly involved in the scam.<\/p>\n
Legal banking expert Pradjoto revealed to the press in July
\nthat the transfer was payment for EGP's services in securing the
\nreturn of the bank's interbank claims on closed down Bank BDNI.<\/p>\n
EGP is a company owned by businessmen Joko Chandra and Setya
\nNovanto, who are affiliated with Golkar.<\/p>\n
Officials said Bank Bali should not have used any third party
\nbecause the interbank claims are guaranteed by IBRA through the
\ngovernment's blanket guarantee scheme.<\/p>\n
Former Bank Bali president Rudy Ramli, one of several suspects
\nunder police investigation, reportedly told police interrogators
\nlast week that several top government officials and people close
\nto President B.J. Habibie may have been involved in the deal.<\/p>\n
According to a transcript of the police questioning leaked to
\nthe media, Rudy named Finance Minister Bambang Subianto, Bank
\nIndonesia Governor Sjahril Sabirin, State Minister of the
\nEmpowerment of State Enterprises Tanri Abeng, head of the Supreme
\nAdvisory Council (DPA) A.A. Baramuli, President B.J. Habibie's
\nyounger brother Suyatim \"Timmy\" Habibie, IBRA deputy chairman
\nPande Lubis and five top businessmen as being involved in the
\ncase.<\/p>\n
The Indonesian Democratic Party of Struggle (PDI Perjuangan)
\nhas also accused Habibie's brother and several high-ranking
\ngovernment officials of being involved.<\/p>\n
Kontan weekly said in its Friday issue that the money
\ntransferred to EGP was supposed to be used to help finance
\nefforts to ensure Habibie's reelection.<\/p>\n
Sjahril told a hearing with the House of Representatives'
\nCommission VIII on finance and banking that the Rp 546 billion
\ncommission fee had been fully returned to Bank Bali.<\/p>\n
But legislators were not satisfied, saying that returning the
\nmoney was not enough because a crime had been committed in the
\nBank Bali deal.<\/p>\n
Legislators pushed the country's top banking authorities to
\nadmit the involvement of \"powerful\" people in the Bank Bali case
\nand to reveal their names.<\/p>\n
But Bambang, Sjahril and IBRA chairman Glenn S. Yusuf said
\nthey could not answer those questions given that the
\ninvestigation had yet to be completed.<\/p>\n
Bambang said the government has appointed
\nPricewaterhouseCooper to validate IBRA's internal audit on the
\ncase.<\/p>\n
\"The audit will be completed in two weeks,\" Bambang said,
\nadding that the result would be handed over to National Police
\nand the attorney general for legal measures to be taken.<\/p>\n
But the legislature was not satisfied with the response,
\nprompting the ruling Golkar faction to issue a statement on
\nFriday urging Habibie to dismiss Bambang and Glenn.<\/p>\n
Many legislators have said that an independent audit on BI was
\ncrucial because tracing the flow of the Bank Bali funds would
\nreveal the \"powerful\" people involved in the deal.<\/p>\n
The IMF said in the letter the audit on BI should include the
\ntracing of funds, \"from the time they were paid out from Bank
\nBali to the time when they were returned to the bank\" should this
\noccur. (rei)<\/p>",
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