Djoko freed from all charges<\/p>\n
JAKARTA (JP): South Jakarta District Court on Monday
\nexonerated chief defendant Djoko S. Tjandra of all charges in the
\nRp 546 billion (US$64.2 million) Bank Bali scandal on a legal
\ntechnicality and the prosecutor's failure to back his arguments
\nup with testimony by witnesses.<\/p>\n
\"Prosecutor Antasari Azhar has failed to present more than one
\nwitness to prove that the defendant had influenced officials to
\ndisburse Rp 904 billion in funds, as earlier charged by the
\nprosecutor,\" presiding judge Soedarto told the hearing at the
\ndistrict court.<\/p>\n
The defendant, a director of the trading and investment firm
\nPT Era Giat Prima (EGP), had taken over Bank Bali's interbank
\nloans from the closed Bank Daging Nasional Indonesia (BDNI) and
\nhad allegedly influenced certain officials, including suspended
\nCentral Bank (BI) governor Sjahril Sabirin, to disburse Rp 904
\nbillion in repayment of the funds.<\/p>\n
The action resulted in Rp 904 billion in losses to the state.<\/p>\n
Several witnesses at the earlier preliminary hearing had noted
\nthat PT EGP should never have taken over Bank Bali's interbank
\nloans since they were guaranteed by the government under the bank
\nrestructuring program.<\/p>\n
Earlier, Antasari had demanded an eighteen month-jail term for
\nDjoko, accusing the defendant of having violated subsection 1a of
\nArticle 1 of the 1971 Anti-Corruption Law, which carries a life
\nsentence.<\/p>\n
Antasari noted on Monday that he would appeal the verdict.<\/p>\n
In the absence of witnesses who could testify that the
\ndefendant had in any way influenced any official, judge Soedarto
\nsaid that it only remained for the panel of judges to decide on
\nthe matter of the January 1999 cessie (waiver of legal rights)
\ncontract.<\/p>\n
\"That's the legal technicality. A dispute involving a written
\nagreement is a civil case,\" Soedarto said.<\/p>\n
The scandal originated from the failure of three private banks
\n-- Bank BDNI, Bank Tiara and Bank Umum Nasional -- to repay a
\ntotal of Rp 904 billion to Bank Bali, a debt which remained
\nunpaid when the three were closed down by BI in late 1998 due to
\npoor financial records.<\/p>\n
Bank Bali then asked the government for the loans to be repaid
\nas it had since been placed in the restructuring program.<\/p>\n
The cessie contract stated that PT EGP was obliged to pay Rp
\n598 billion in negotiable instruments as collateral to Bank Bali
\nby June 11 last year, which amount was never paid.<\/p>\n
Instead, Bank Bali and PT EGP agreed that PT EGP would just
\npay the bank 60 percent of the value of the negotiable
\ninstruments -- that is Rp 358 billion in cash -- which PT EGP
\ngladly handed over.<\/p>\n
\"This is legal. According to Articles 1338 and 1340 of the
\nCivil Code, as long as both parties agree upon something, nobody
\nhas a right to stop them from doing so,\" Soedarto said after the
\nhearing. (ylt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/djoko-freed-from-all-charges-1447893297",
"image": ""
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"sponsor_url": "https:\/\/okusiassociates.com"
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