Former minister testifies in Bank Bali trial<\/p>\n
JAKARTA (JP): Former Minister of Finance Bambang Subianto, who
\nwas also chairman of the Indonesian Bank Restructuring Agency
\n(IBRA), testified on Wednesday that Rudy Ramli, when he was
\npresident of Bank Bali, had complained about the difficulties to
\nobtain IBRA funding to cover a loan BDNI Bank owed Bank Bali.<\/p>\n
But Bambang said he was not aware about the disbursement of
\nthe agency's funds to the bank.<\/p>\n
\"Rudy Ramli met with me and complained about BDNI's bad debt,\"
\nBambang told the Central Jakarta District Court, which is trying
\nBank Indonesia Governor Syahril Sabirin on charges of corruption.<\/p>\n
\"But I said that the funds could not be disbursed because it
\n(the situation) did not comply with a joint agreement between
\nIBRA and Bank Indonesia directors,\" he was quoted by Antara as
\nsaying.<\/p>\n
The agreement document defined the rights and obligations of
\nliquidated banks, and included criteria regarding inter-bank debt
\nassistance.<\/p>\n
Bank Bali's claim could not be approved because it did not
\nfulfill the requirements stipulated in the agreement, the witness
\nsaid.<\/p>\n
Syahril is being tried for his alleged role in the
\ndisbursement of Rp 904 billion (US$96.2 million) of IBRA funds to
\nBank Bali. According to the indictment, the defendant had ordered
\none of his directors, Erman Munzir, between February 1999 and
\nJune 1999, to disburse the money to Bank Bali.<\/p>\n
Rp 546 billion (US$58.8 million) of the disbursed funds was
\npaid to factoring firm PT Era Giat Prima as a \"commission\" for
\nhelping Bank Bali reclaim interbank loans owed by several closed-
\ndown and taken-over banks. It was not necessary for Bank Bali to
\nuse a third party to recoup interbank loans as the claims were
\nguaranteed by the government.<\/p>\n
Bambang said that disbursement of the loan owed by Bank BDNI
\nto Bank Bali was based on a recommendation by then IBRA chairman
\nGlenn M. Yusuf.<\/p>\n
Bambang was the first chairman of IBRA, which was established
\nby former president Soeharto in late January 1998. After only two
\nmonths in the position he was replaced by Iwan R. Prawiranata,
\nwho survived for approximately three months. The third chairman,
\nGlenn M. Yusuf, served for a turbulent 18 months, while Cacuk
\nSudarijanto, appointed in December 1999, was replaced by Edwin
\nGerungan in November last year.<\/p>\n
The court also heard the testimony of a former director of
\nBank Bali, Firman Sutjahja, while Rudy Ramli failed to appear at
\nthe hearing due to illness.<\/p>\n
Pande Nasorahona Lubis, a former deputy chairman of IBRA, and
\none the owners of Era Giat Prima, Djoko S. Tjandra, were tried
\nlast year for their alleged involvement in the Bank Bali scandal.
\nBoth were acquitted of all charges by the same district court.<\/p>\n
Erman Munzir will be tried separately.<\/p>\n
The case attracted public attention after it was revealed that
\nEGP was owned by people closely connected with a small group in
\nthe Golkar Party responsible for the reelection campaign of then
\npresident B.J. Habibie, who lost the position in October 1999.
\n(sim)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/former-minister-testifies-in-bank-bali-trial-1447893297",
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