Legislators seek probe on bad debts<\/p>\n
JAKARTA (JP): The monetary authority must take to court the
\nmanagement of state banks suspected of violating banking rules
\nand bad debtors who inflicted huge losses on state banks, a
\nlegislator from the ruling Golkar said on Wednesday.<\/p>\n
Thomas Suyatno said bad bankers and debtors at state banks had
\nbeen partly responsible for the country's current economic
\ncrisis.<\/p>\n
"The government has to be fair," he said on the sidelines of a
\nhearing of the House of Representatives Commission VIII for
\nfinance and the state budget.<\/p>\n
Thomas said he had a list of the country's 50 largest debtors
\nat state banks, with the largest debt owed by a single debtor
\ntotaling Rp 8.7 trillion (US$983 million) while the "smallest"
\ndebt reached Rp 1.4 trillion.<\/p>\n
He said he would ask his fellow legislators to push for legal
\naction against those causing the huge amount of bad debts at
\nstate banks.<\/p>\n
"If the government bars errant bankers from traveling out of
\nthe country, these people (debtors) have to be included as well."<\/p>\n
Asked to comment on this, Bank Indonesia Governor Sjahril
\nSabirin also vowed to take to court those suspected of breaching
\nbanking regulations at state banks.<\/p>\n
He said the authorities would bring to court the management
\nand owners of the 38 private banks closed by the government last
\nweek who were suspected of violating banking regulations.<\/p>\n
He also said the central bank would draw up a list of errant
\nbankers to be barred from leaving the country.<\/p>\n
Thomas was chief commissioner of Bank Aspac and a commissioner
\nat Bank Uppindo. The two banks were among the 38 banks closed by
\nthe government last week.<\/p>\n
Thomas denied a report that he and his family had left the
\ncountry to avoid investigations for possible wrongdoings.<\/p>\n
"I am an Indonesian citizen and will never leave this beloved
\ncountry," he said.<\/p>\n
"I have never breached any bank regulation during my 30 years
\nin the industry," he added.<\/p>\n
Following the closure of Bank Aspac, its staff held a
\ndemonstration demanding compensation from the bank's owners in
\naddition to the government's severance package.<\/p>\n
Employees at other closed banks also have held similar
\ndemonstrations, making it impossible for depositors at closed
\nbanks to withdraw their deposits, which are guaranteed by the
\ngovernment.<\/p>\n
The Indonesian Bank Restructuring Agency (IBRA) demanded
\nseveral bank owners meet with their employees to discuss their
\ndemands.<\/p>\n
Thomas, however, lambasted IBRA for failing to act firmly in
\ndealing with the problem.<\/p>\n
He said bank owners, management and commissioners were barred
\nfrom entering the closed banks according to the agency's March 13
\nletter.<\/p>\n
He said the letter effectively put the closed banks in the
\nhands of the agency.<\/p>\n
"So it is IBRA which has to take the responsibility. If the
\nbank employees are creating difficulties, the agency must act
\naccording to new banking regulations which classify such actions
\nas crimes."<\/p>\n
"Will IBRA dare to act accordingly," he asked?<\/p>\n
Legislators Paskah Suzeta, also from the Golkar faction, and
\nUray Faisal Hamid from the United Development Party faction urged
\nthe government to provide bridging finance to settle severance
\npayments to employees of the closed banks.<\/p>\n
"To reduce tensions, the government should advance the
\npayments for the severance compensations. Don't let these jobless
\npeople suffer," Faisal added.<\/p>\n
The government launched major bank restructuring measures on
\nMarch 13, including closing 38 banks, taking over seven banks and
\nidentifying nine banks which would be recapitalized.<\/p>\n
Sjahril reiterated late Tuesday that owners of the nine banks
\nto be recapitalized had committed to raising 20 percent of the
\nrecapitalization funding before the April 21 deadline. Under the
\nprogram, the government will provide the other 80 percent of the
\nrecapitalization funding.<\/p>\n
Banks which cannot raise their 20 percent of the funding by
\nthe deadline will be closed down. (rei)<\/p>",
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