Govt could be sued over R&D uproar<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
As controversy over the government's plan to let cooperative
\ndebtors off criminal charges continues, the Legal Aid Institute
\n(LBH) said on Monday that a class action against such a policy
\nmight be considered an option.<\/p>\n
LBH Chairman Munarman told The Jakarta Post that the action
\ncould be a good way of protecting the interests of the public.<\/p>\n
\"As a breakthrough in the due process of the law, a class
\naction could be used to deal with this (problem),\" Munarman said
\non Monday, adding that the plan to let the debtors walk free from
\ncriminal litigation was the latest example of a public lie
\ncreated by the government through its policies.<\/p>\n
The Cabinet decided last week to free former bank owners
\ndeemed cooperative in settling their debts to the state from past
\nbanking crimes. A presidential directive for the \"release and
\ndischarge\" (R&D) status of the debtors is currently being
\nprepared.<\/p>\n
Among the ex-bank owners reportedly to be granted R&D status
\nare Sudono Salim (former owner of Bank BCA), Ibrahim Risyad (Bank
\nRSI), Sudwikatmono (Bank Subentra and Bank Surya), Hendra Liem
\n(Bank Budi International) and The Nin King (Bank Danahutama).<\/p>\n
They are part of the total of 35 ex-bankers whose banks
\nreceived some Rp 144.5 trillion (about US$16 billion) of state-
\nfunded liquidity support loans injected into the banking sector
\nduring the late 1990s financial crisis.<\/p>\n
Aside from breaking the legal lending limit ruling for banks,
\nwhich contributed to the banking crisis, many of the former bank
\nowners have been accused of misusing the loan facility by
\nchanneling the funds to affiliated business groups or using them
\nfor speculation against the rupiah.<\/p>\n
The government has argued that the R&D policy is needed to
\nmaintain legal certainty as it was part of the debt settlement
\nschemes signed by the former bank owners with the previous
\ngovernment. Under the agreements, the debtors would settle the
\ndebts via cash, assets or a combination of both.<\/p>\n
But critics have said that most of the assets surrendered to
\nthe state are rapidly decreasing in value, causing the government
\nto suffer huge losses if they are sold. This, in turn, would
\nforce taxpayers to shoulder a much greater burden of the cost of
\nthe banking crisis.<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA), for instance,
\nwhich has sold most of the assets surrendered by Salim, could
\nraise only some Rp 28 trillion, compared with Salim's debts of
\nmore than Rp 52 trillion. Salim is the largest debtor.<\/p>\n
What has made it worse, however, was a recent revelation that
\nthe amount of debt established under the first agreement covered
\nthe principle alone, not the interest.<\/p>\n
Elsewhere, Munarman called on the House of Representatives to
\njump to the public's defense, \"as the House is a legitimate
\ninstitution set up to fight for the people it represents.<\/p>\n
\"And if the House requests LBH to file a class action against
\nany government policy to free debtors from criminal prosecution,
\nwe'll be ready.\"<\/p>\n
Earlier, economists also urged the government not to allow
\ndebtors to walk free from criminal charges, in order to avoid a
\nbacklash from the public in the future.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-could-be-sued-over-rd-uproar-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}