Court begins trial of BI governor<\/p>\n
JAKARTA (JP): The Central Jakarta District Court commenced the
\ntrial of Bank Indonesia (Central Bank) governor Syahril Sabirin
\non Wednesday regarding his alleged involvement in the
\ndisbursement of Rp 904 billion (US$96.2 million) of Indonesian
\nBank Restructuring Agency (IBRA) funds to Bank Bali.<\/p>\n
Chief prosecutor Y.W. Mere said Syahril was responsible for
\nendorsing the disbursement of IBRA's money to Bank Bali.<\/p>\n
He said Bank Indonesia and the Ministry of Finance had ruled
\nthat the loans to Bank Bali were not covered by the government's
\nguarantee scheme.<\/p>\n
\"However, the defendant ordered one of his directors, Erman
\nMunzir, between February 1999 and June 1999 to disburse the money
\nto Bank Bali,\" Mere told the hearing, presided over by Judge
\nSoebardi.<\/p>\n
He also said that the funds were extended for the purpose of
\ncovering a loan that the now-defunct Bank BDNI had owed to Bank
\nBali, but was unable to repay at the time it was taken over by
\nIBRA. It later became apparent that Rp 546 billion (US$58.8
\nmillion) of the money had been paid to factoring firm PT Era Giat
\nPrima (EGP) as a \"commission\" for helping secure the repayment of
\nloan installments.<\/p>\n
\"His action caused not only financial losses to the state, but
\nalso undermined public trust in the country's banking system,\" he
\nsaid.<\/p>\n
The prosecutor said Syahril had violated Article 1 of the 1971
\nlaw on corruption prohibiting the enrichment of oneself or others
\nat the expense of the state. The Article carries a maximum
\npunishment of a life prison sentence.<\/p>\n
He also accused the defendant of having violated Article 55 of
\nthe Criminal Code for abusing authority and conspiring with
\nothers to commit a crime.<\/p>\n
In response to the prosecutors' indictment, Judge Soebardi
\ngranted defendant Syahril permission to read out his personal
\nstatement contesting the indictment, despite the prosecutors'
\nprotests.<\/p>\n
\"I have never imagined being seated as a defendant, nor as a
\nwitness in this courtroom. Since my childhood I have always been
\ncareful in making decisions and taking steps so that I would not
\ndo anything wrong.<\/p>\n
\"But, this trial is a reality that I have to go through as a
\nway to prove that I've done no wrong,\" Syahril said while reading
\nout his personal statement.<\/p>\n
He said the indictment was groundless as it had been prepared
\nby the prosecutors upon speculative assumptions.<\/p>\n
The defendant said Bank Indonesia issued the letter ordering
\nthe disbursement of the funds after receiving verification of
\nBank Bali's financial condition from IBRA. Furthermore, the
\nverification, which was required to cover BDNI's loan as claimed
\nby Bank Bali, would no longer be held by Bank Indonesia as BDNI
\nhas since been taken over by IBRA.<\/p>\n
A team of seven lawyers, led by Muhammad Assegaf also read out
\ntheir defense statement against the prosecutors' accusations.<\/p>\n
Assegaf said the case was not a pure legal matter as it has
\narisen from President Abdurrahman Wahid's political motives to
\nterminate Syahril as the central bank governor.<\/p>\n
\"Based on a recorded conversation between Syahril Sabirin and
\nAttorney General Marzuki Darusman, it's obvious that the
\nPresident had pressured the Attorney General to force Syahril to
\nstep down,\" he said.<\/p>\n
\"This trial is a consequence of Syahril's rejection of the
\nPresident's wishes,\" Assegaf told reporters after the hearing.<\/p>\n
The prosecutors have also named former Bank Bali director Rudy
\nRamli, former Minister of Investment and State Enterprises
\nDevelopment Tanri Abeng, businessmen Setya Novanto, Firman
\nSoetjahja and Irvan Gunardwi, and former Supreme Advisory Council
\nchairman A.A. Baramuli, as other suspects in the case.<\/p>\n
Meanwhile, businessman Djoko S. Tjandra and former IBRA deputy
\nchairman Pande Nasorahona Lubis were acquitted of all charges
\nrelated to the Bank Bali scandal in August and November last
\nyear.<\/p>\n
The case drew public attention when it was learned that EGP
\nwas owned by people closely connected with a small group in the
\nGolkar Party who were responsible for the reelection of then
\npresident B.J. Habibie, who eventually lost his bid to remain in
\npower in October 1999.<\/p>\n
Syahril, who has been detained by the Attorney General's
\nOffice for over five months, was installed by then president
\nSoeharto as Bank Indonesia's governor in February 1998, replacing
\nSoedradjad Djiwandono, who is also being questioned at the Office
\nfor his alleged involvement in the Government Liquidity Support
\nFund (BLBI) case.<\/p>\n
Syahril was reappointed by Habibie when Bank Indonesia became
\nan independent central bank.<\/p>\n
President Abdurrahman Wahid has been demanding the resignation
\nof Syahril since he took over the country's leadership late last
\nyear. Syahril has continued to disregard Abdurrahman's demands.<\/p>\n
Presiding Judge Soebardi adjourned the hearing until next
\nWednesday, when the court will hear the prosecutors' counter
\nstatement against the defendant's personal statement and the
\ndefense lawyers' statement. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/court-begins-trial-of-bi-governor-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}