BPK admits limits in bank scandal audit<\/p>\n
JAKARTA (JP): Head of the Supreme Audit Agency (BPK) Satrio B.
\nYudono said on Tuesday that legal restrictions and time
\nlimitations prevented an audit by PricewaterhouseCoopers (PwC)
\nfrom confirming if influential figures were involved in the Bank
\nBali scandal.<\/p>\n
However, Yudono confirmed that fraud was committed and said it
\nwas now up to the police to investigate further.<\/p>\n
\"We have handed over (the audit results) to the police because
\nwe're now stagnant,\" he said after a meeting with several members
\nof the special investigation team of the House of
\nRepresentatives.<\/p>\n
Yudono said BPK and PwC were powerless to act when several
\ninfluential people declined to be interviewed.<\/p>\n
He said the 38 people who could not be interviewed included
\nthe head of the Supreme Advisory Council, Arnold A. Baramuli, and
\nState Minister of the Empowerment of State Enterprises Tanri
\nAbeng.<\/p>\n
He added that personal bank accounts of several people also
\ncould not be audited.<\/p>\n
\"We recorded (names of people) who objected and reported them
\nto the police for further investigation,\" he said.<\/p>\n
The scandal stems from the transfer of Rp 546 billion from the
\nbank to PT Era Giat Prima (EGP) as a commission for its help in
\nrecouping some Rp 904 billion in interbank loans on closed
\ninstitutions. The bank did not need another party's help because
\nthe loans were guaranteed by the Indonesian Bank Restructuring
\nAgency (IBRA).<\/p>\n
There are allegations that the inner circle of President B.J.
\nHabibie was involved in the scandal, with the payment reportedly
\nearmarked for political purposes ahead of the November
\npresidential election.<\/p>\n
BPK has been roundly criticized by both the House and the
\nInternational Monetary Fund (IMF) for a lack of transparency in
\nconducting the investigation.<\/p>\n
BPK demanded PwC divide its audit into short form and long
\nform reports. The agency has publicly disclosed the condensed
\nreport, with the full report only provided to the police for
\nfurther investigation.<\/p>\n
The 36-page summary, a copy of which was obtained by The
\nJakarta Post, constitutes a limited report of PwC findings and
\nrecommendations. It does not include the flow of funds from Bank
\nBali to EGP, as well as from EGP to other bank accounts.<\/p>\n
Yudono said that the full report could not be handed over to
\nthe House and the International Review Committee as requested by
\nthe IMF because of restrictions under the banking law and BPK's
\nregulations.<\/p>\n
He added that disclosing information on bank accounts would
\nviolate banking secrecy codes.<\/p>\n
Yudono said the findings could only be made available to the
\npolice, the attorney general and, in a tax fraud case, the tax
\noffice under the law.<\/p>\n
PwC said in the report that it \"has uncovered numerous
\nindicators of fraud, noncompliance, irregularity,
\nmisappropriation, undue preferential treatment, concealment,
\nbribery and corruption during the processing and payment of the
\nBank Bali claims\".<\/p>\n
The alleged fraud was carried out by prominent individuals
\nincluding ministers, senior government officials, legislators,
\npolitical party officials and leading members of the business
\ncommunity, it added.<\/p>\n
BPK auditing team member Amrin Siregar said that the most
\nimportant conclusion was that the Rp 904 billion transfer from
\nthe central bank to Bank Bali was illegal because IBRA deputy
\nchairmen Farid Harianto and Pande Lubis did not have the
\nauthority to order the transaction.<\/p>\n
He noted the transfer was made outside regular banking hours
\nat 7 p.m. on June 1.<\/p>\n
\"This is very suspicious,\" he said.<\/p>\n
In a related development, National Police spokesman Brig. Gen.
\nTogar Sianipar said on Tuesday that dossiers of eight suspects
\nquestioned in the police investigation were being prepared to be
\nhanded over to the courts.<\/p>\n
The police have named former members of Bank Bali management,
\ntwo EGP owners and IBRA senior official as suspects.<\/p>\n
Meanwhile, former Bank Bali president Rudy Ramli sought
\nprotection on Tuesday from the National Commission on Human
\nRights because of his fears for his safety, the group's
\nsecretary-general Clementio dos reis Amaral said.<\/p>\n
Amaral said that Rudy appealed for the protection in a meeting
\nwith the commission members.<\/p>\n
Rudy acknowledged last week the existence of a journal which
\npurportedly describes the involvement of Habibie's inner circle
\nin the scandal. However, he did not confirm the contents<\/p>\n
Rudy told journalists after meeting with the commission
\nmembers that he was often being subjected to terror.
\n(rei\/ylt\/emf\/rms)<\/p>",
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