BPK wants BI, IBRA to return $2.5 billion<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
The Supreme Audit Agency (BPK) demanded that Bank Indonesia
\nand the Indonesian Bank Restructuring Agency (IBRA) immediately
\nreturn government funds allegedly misused by the two institutions
\nor it would ask the Attorney General's Office (AGO) to launch an
\ninvestigation.<\/p>\n
\"If they (BI and IBRA) refuse to repay the money back we will
\ndeclare that there is a huge loss in the state funds resulting
\nfrom their actions. Thus, we will ask the AGO to probe the case,\"
\nBPK deputy chairman Bambang Wahjudi told a press conference on
\nFriday.<\/p>\n
Bambang did not set out any deadline for the central bank and
\nIBRA to return the money.<\/p>\n
The funds were stashed into a government special account
\n(popularly called Account No. 502) at the central bank. The
\nfunds, launched in the wake of the late 1990s banking crisis,
\nwere used to cover all obligations of closed banks. The money,
\nmeant to be a blanket guarantee program has been part of efforts
\nto revive confidence in the troubled banking industry.<\/p>\n
But BPK announced last week that based on its audit, there had
\nbeen irregularities in the disbursement of some of the funds
\namounting to Rp 20.9 trillion (US$2.52 billion). Bambang said
\nthere was a violation of procedures in the disbursement of the
\nfunds.<\/p>\n
The report was the result of an investigation undertaken at
\nthe request of the House of Representatives in mid-2001, after
\nmost of the funds (about Rp 53.8 trillion) in the account had
\nbeen used.<\/p>\n
The audit request was also made after the government decided
\nto set up a second account worth about Rp 40 trillion for the
\nsame purpose. The new account is now known as Account No. 509.<\/p>\n
Banking analyst Pradjoto urged BPK to immediately report the
\ncase to the AGO without having to wait for the two institutions
\nto return the money because a violation of procedures was an act
\nof corruption.<\/p>\n
Calling the complaints from the central bank over the BPK
\nfindings \"biased,\" Bambang said that during and after the
\ninvestigation the agency had several times reconfirmed and
\nexplained all the findings to the respective officials.<\/p>\n
\"I do not know why the central bank wanted us to review it. It
\nis already cleared because in the audit report we have addressed
\ntheir concerns,\" said Bambang.<\/p>\n
BPK's chairman Satrio B. Joedono reaffirmed Bambang's
\nstatement during the briefing, saying that the agency would stick
\nto its audit result and challenge any party to confront the
\nmatter in front of the House of Representatives.<\/p>\n
Central bank Governor Burhanuddin Abdullah said earlier that
\nthere were no irregularities in the use of funds in the \"502\"
\naccount and called the report \"biased\".<\/p>\n
Burhanuddin also called for a meeting with BPK and the House
\nto deal with the matter.<\/p>",
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"sponsor": "Okusi Associates",
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