Businessman Tansil charged with corruption<\/p>\n
JAKARTA (JP): Eddy Tansil, the owner of the Golden Key Group,
\nwas arraigned in the Central Jakarta District Court yesterday,
\nmarking the start of what is billed by the press as the biggest
\ncorruption trial in Indonesian history.<\/p>\n
The government prosecutors accused Tansil of obtaining and
\ncashing in on loans from the government-owned Bank Pembangunan
\nIndonesia (Bapindo) by illegal means, causing the state to lose
\n$449 million, or the equivalent of Rp 962 billion.<\/p>\n
Lukman Bachmid, who is leading the prosecution, charged Tansil
\nwith the 1971 anti-corruption law, violation of which carries a
\nmaximum penalty of life in prison.<\/p>\n
\"His action obstructed the government's programs in
\ndevelopment and economy causing the state, through Bank
\nPembangunan Indonesia, to lose $436,441,500 in addition to
\n$12,437,280 worth of discount facilities granted by the bank,\"
\nLukman told the court.<\/p>\n
Tansil, dressed in a brown batik shirt and white pants,
\nappeared nervous at times during the three-hour session, which
\nheard Lukman reading the charges, on corruption and also for
\nforgery.<\/p>\n
In spite of the tense atmosphere, he did throw smiles now and
\nthen at the mob of photographers and cameramen who blocked his
\npath when he arrived at the court building in the morning.<\/p>\n
The trial was adjourned until Saturday, when Tansil is
\nexpected to present his defense statement. The 40-year old
\nbusinessman, who also goes by the names Tan Tju Fuan and Tan Tjoe
\nHong, is represented in the trial by Gani Djemat and Partners, a
\npowerful corporate law firm. Gani and four other lawyers from his
\ncompany represented Tansil at the meeting.<\/p>\n
Tansil is the first of at least six people whom the Attorney
\nGeneral's office is planning to prosecute in relation with the
\nloan scandal at Bapindo.<\/p>\n
The other five are all former executives of the bank.<\/p>\n
The actual losses may be bigger than the $448 million
\nsuggested in the dossiers for Tansil. One estimate puts it at Rp
\n1.3 trillion ($620 million), if interest payments are included,
\nand others guess this goes as high as Rp 1.7 trillion ($810
\nmillion).<\/p>\n
The previous largest corruption case brought before the court
\nwas in 1991 against Dicky Iskandar Dinata, an executive of the
\nprivate Bank Duta, who was given 10 years imprisonment for his
\nspeculative trading, causing the bank to lose $416 million.<\/p>\n
The government, under strong pressure to recover some of the
\nBapindo losses, has already confiscated many of Tansil's assets
\nand those belonging to Golden Key Group. They include a number of
\nhouses, uncompleted petrochemical projects in the Cilegon
\nindustrial town in West Java, an islet off Cilegon, and vehicles.
\nIt has also blocked various bank accounts under his and his
\ncompany's name.<\/p>\n
These are worth a total of about Rp 200 billion, according to
\none unofficial estimate.<\/p>\n
According to the prosecution, Tansil, individually and in
\ncollaboration with others, \"sought to enrich himself\".<\/p>\n
Tansil since 1989 had secured a series of loans from Bapindo
\nto help finance his petrochemical projects, but most of these
\nbypassed normal banking practices.<\/p>\n
The prosecution said between 1989 and 1992 he also managed to
\ncash letters of credit from the bank into his own accounts,
\nrather than to his suppliers as stated on his loan application,
\nwith the assistance of Bapindo insiders.<\/p>\n
Bank officials helped him do this by illegally changing the
\nvariety of credit he had, converting his notes to red clause
\nL\/Cs, which are basically unsupervised.<\/p>\n
According to the prosecution, Tansil siphoned off the Bapindo
\nfunds to pay off previous credits with Bapindo and other banks,
\nfinance other industrial projects belonging to the Golden Key
\nGroup, buy properties including an island, opened up new deposit
\naccounts and gave gifts to his relatives.<\/p>\n
Presiding at the trial is Judge Soetrisno, the chief of the
\nCentral Jakarta District Court.<\/p>\n
The small courtroom used for the trial was packed with
\njournalists, TV crews and observers.<\/p>\n
According to court sources, a total of 61 witnesses have been
\nlined up for the trial, and the list includes Navy Admiral (ret.)
\nSudomo, currently the chairman of the Supreme Advisory Council.<\/p>\n
It is not clear however whether Sudomo, who introduced Tansil
\nto Bapindo in 1989, would be summoned to testify because he has
\nalready given a deposition to the Attorney General's office. (02)<\/p>",
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