Case against Djoko thrown out of court<\/p>\n
JAKARTA (JP): The South Jakarta District Court dropped on
\nMonday the indictment of Djoko S. Tjandra, a defendant in the Rp
\n546 billion (US$73.7 million) Bank Bali scandal, on a legal
\ntechnicality.<\/p>\n
Presiding Judge R. Soenarto said the judges did not have the
\nauthority to try the case as there was insufficient evidence
\nimplicating the defendant's involvement in the alleged crime.<\/p>\n
\"It is a civil case, not a criminal one. Therefore, it's the
\nauthority of a team of judges in a civil case to rule whether the
\ncessie contract was illegal or not,\" he said while reading the
\npretrial verdict in the hearing, attended by scores of spectators
\nand journalists.<\/p>\n
He added that should the state have suffered losses from the
\ndefendant's alleged corrupt practices, it could demand
\ncompensation from the defendant in a civil case.<\/p>\n
The Bank Bali scandal centers around a Rp 546 billion transfer
\nto PT Era Giat Prima (EGP) as a commission for services in
\nassisting the bank to recoup Rp 904 billion in interbank loans.<\/p>\n
The presiding judge said the judges also found faults in the
\nindictment.<\/p>\n
\"It was too premature to declare the cessie agreement illegal,
\nas a team of judges in a separate civil case hasn't yet ruled the
\ncessie illegal. Therefore the indictment must be dropped,\" he
\nsaid.<\/p>\n
The district court's verdict came less than a week after the
\nJakarta State Administrative Court (PTUN) issued a ruling that
\nannulled a decision made by the Indonesian Bank Restructuring
\nAgency (IBRA) chairman on Oct. 15, 1999.<\/p>\n
The Oct. 1999 decision annulled the cessie contract and
\nordered the fund to be used as a recapitalization fund for Bank
\nBali to improve its financial record.<\/p>\n
Judge Soenarto said the case began in November 1998, when Rudy
\nRamli, the president director of Bank Bali, held several meetings
\nwith the defendant and Setya Novanto, both EGP executives, asking
\nthe two people's assistance through PT Era Giat Prima to withdraw
\nthe bank's fund, which had been borrowed by, among, others Bank
\nDagang Nasional Indonesia (BDNI).<\/p>\n
At the time, the Indonesian Bank Restructuring Agency (IBRA)
\nhad closed down scores of banks, including BDNI, due to their
\npoor financial record and seized their assets.<\/p>\n
Representing Bank Bali, Djoko took the initiative to request a
\nloan disbursement from IBRA in March 1999, but the agency
\nrejected the request due to technicalities, including the bank's
\nfailure to meet the deadline for submitting the request to IBRA.<\/p>\n
On Feb. 8, 1999, Djoko contacted government figures, including
\nPande Lubis from IBRA, Dragono Lisan and Erman Munzir from Bank
\nIndonesia (Central Bank), and Bank Bali executives Firman
\nSoetjahja, Irvan Gunardwi and Henry Kurniawan to discuss the
\nmatter.<\/p>\n
Yet, the Central Bank rejected the request to allow IBRA to
\ndisburse the loan.<\/p>\n
Three days later, another meeting was held at Hotel Mulia
\nSenayan in Central Jakarta discussing the disbursement of the
\nloan. The meeting was attended by Djoko, Central Bank governor
\nSjahril Sjabirin, then state minister of state enterprises Tanri
\nAbeng, Pande Lubis, then supreme advisory chairman A.A. Baramuli,
\nSetya Novanto and Firman Soetjahja.<\/p>\n
In the meeting, which was led by Baramuli, it was proposed
\nthat Bank Bali executives write a letter to IBRA's chairman
\nasking his assistance in recovering its interbank loans.<\/p>\n
IBRA positively responded to the letter and disbursed the
\nfund, but in the absence of the finance minister's approval.<\/p>\n
Djoko and Setya Novanto, who was also a treasurer of the
\nGolkar Party, were then given Rp 546 billion as commission for
\nassisting Bank Bali in recovering the fund.<\/p>\n
The verdict prompted protest from chief prosecutor Ridwan
\nMoekiat.<\/p>\n
\"The judges have acted beyond their responsibility as they
\nwere not supposed to touch the substance of the case in the
\npretrial hearing,\" Ridwan said after the hearing.<\/p>\n
\"We'll soon file an appeal to the Jakarta High Court,\" he
\nadded. (asa)<\/p>",
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