Government warns corrupt ex-bank owners of legal sanctions<\/p>\n
JAKARTA (JP): Coordinating Minister for the Economy Rizal
\nRamli said on Tuesday that legal action would be taken against
\nformer bank owners who are deemed \"uncooperative\" in settling
\ntheir debt to the government.<\/p>\n
Rizal said on Tuesday that the government had agreed to extend
\nthe repayment period of the debt, but in return the former bank
\nowners must provide personal guarantee and inject additional
\nassets in case the assets which had been previously surrendered
\nwere insufficient to cover the debt.<\/p>\n
\"If we fail to negotiate ... then we will hand over the case
\nto the Attorney General Office,\" Rizal said in a press conference
\nfollowing a meeting with House of Representatives top
\nlegislators.<\/p>\n
He also said it was very important that concrete policy be
\nimmediately taken to resolve the debt problem of the former bank
\nowners because a further delay would only increase the cost of
\nthe country's bank restructuring program.<\/p>\n
\"We must take action immediately or there will be an
\nadditional cost due to the indecision,\" Rizal said.<\/p>\n
The meeting was the final consultation between the government
\nand the House over plans to revise the controversial master of
\nsettlement and acquisition agreement or MSAA.<\/p>\n
The MSAA was formulated by the previous government of B.J.
\nHabibie and several former bank owners last year. Under the
\nagreement, the former bank owners who are also powerful business
\ntycoons would surrender assets to repay the trillion of rupiahs
\nin emergency liquidity support injected by the government to
\nbailout the banks during the country's worst financial crisis.<\/p>\n
But it turned out that the assets surrendered by the business
\ntycoons were not enough to cover the banks' debts. Under the
\nMSAA, they were not required to cover the deficit.<\/p>\n
This has prompted the previous economic team led by Kwik Kian
\nGie to ask the House to provide support to revise the MSAA.<\/p>\n
The indebted powerful business tycoons included businessmen
\nMohamad \"Bob\" Hasan, Sjamsul Nursalim and Anthony Salim.<\/p>\n
Many of the businessmen are believed to have also forced their
\nbanks to lend most of the banks' money and the government
\nliquidity support to affiliates which led to the violation of
\nbank legal lending limit ruling.<\/p>\n
Under the initial MSAA, there is a \"release and discharge
\nclause\" allowing the business tycoons to be freed from legal
\nsanction although they have violated the legal lending limit
\nruling as long as they repay their obligation to the government.<\/p>\n
But there is now strong pressure for the government to also
\nrevise this part of the MSAA so that violation of the legal
\nlending limit must be given legal sanction although the business
\ntycoons had surrendered enough assets.<\/p>\n
Both Rizal and Attorney General Marzuki Darusman failed to
\ngive a clear answer whether the government would drop the release
\nand discharge clause.<\/p>\n
\"I'm not a legal expert\" Rizal responded when asked by the
\npress.<\/p>\n
Marzuki also gave a long but unclear answer to the same
\nquestion.<\/p>\n
House Speaker Akbar Tandjung said that what was important was
\nthat the government had (partly) revised the MSAA to ensure a
\nminimum loss to the state.<\/p>\n
\"The House will support any action taken by the government as
\nlong as it is intended to minimize the potential loss to the
\nstate,\" Akbar said.<\/p>\n
Meanwhile, legislator Paskah Suzetta who also attended the
\nmeeting said that there seemed to be disagreement among
\ngovernment officials over the MSAA issue.<\/p>\n
He did not clarify whether the disagreement centered on the
\nissue of release and discharge clause.<\/p>\n
Chairman of the Indonesian Bank Restructuring Agency (IBRA)
\nCacuk Sudarijanto, and Finance Minister Prijadi Praptosuhardjo
\nalso attended the meeting. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/government-warns-corrupt-ex-bank-owners-of-legal-sanctions-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}