Mega responsible for IBRA debtors discharge: Hamzah<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Vice President Hamzah Haz said on Monday that President
\nMegawati Soekarnoputri may delegate to her ministers the
\nunpopular move of signing papers that would drop criminal charges
\nagainst bad debtors, yet the final responsibility would still
\nrest with her.<\/p>\n
While explaining that the government had to go ahead with the
\nplanned dropping of criminal charges against debtors, Hamzah
\npointed the finger at Megawati as being the one responsible for
\nany such move.<\/p>\n
\"The signing of the R & D (release and discharge) papers can
\nbe carried out by the coordinating minister for the economy or
\nthe Attorney General's Office, but the one responsible for this
\nwould still be the President,\" Hamzah told reporters. \"Granting
\nan amnesty comes within the prerogative of the President.\"<\/p>\n
The debate over who should sign the release and discharge
\npapers has become the latest controversy surrounding the
\nsettlement by ex bankers of their debts to the government.<\/p>\n
Having misused around Rp 138 trillion (about US$15.3 billion)
\nin Bank Indonesia emergency liquidity loans as well as violated
\nbanking regulations, the ex bankers face prosecution unless they
\nrepay the loans that were misused.<\/p>\n
This forms part of the deals signed by the ex bankers with the
\ngovernment under the shareholders' settlement program. Initiated
\nin 1998 by the Indonesian Bank Restructuring Agency (IBRA), this
\nprogram involves 35 bankers whose banks were eventually taken
\nover by IBRA.<\/p>\n
But only recently -- as the deadline for many of the debtors
\nnears -- have experts raised doubts about the validity of these
\nagreements.<\/p>\n
\"According to the law, the settlement of debts comes under the
\ncivil law so that a resolution should come under this category.
\nThis (the civil law), however, cannot erase criminal aspects if
\nthese be found,\" Hamzah explained, echoing the opinions already
\nvoiced by a number of legal experts.<\/p>\n
\"So, what we must uphold here are legal principles,\" he added.<\/p>\n
Hamzah's remarks have also added to the political undertones
\nof the debate following criticism by People's Consultative
\nAssembly Speaker Amien Rais.<\/p>\n
Amien joined in the public outcry against the government last
\nweek, urging it to annul the release and discharge mechanisms
\neven if the ex bankers repaid all their debts.<\/p>\n
Both Hamzah and Amien are viable contenders for the presidency
\nat the 2004 general elections.<\/p>\n
Analysts say that government officials fear a public backlash
\nif they sign the documents letting some of the country's biggest
\ntycoons off the hook, leaving the poor to suffer the consequences
\nof the tycoons' illegal acts.<\/p>\n
This year alone, some Rp 59 trillion in taxpayers' money will
\nhave been spent on paying interest on the government bonds that
\nwere issued to cover part of the loans the bankers misused.<\/p>\n
This amount will exceed what the government spends this year
\non social welfare programs and development projects taken
\ntogether.<\/p>\n
Government officials denied any finger-pointing in their
\nranks, and said they would come to a decision by early next
\nmonth.<\/p>\n
IBRA has recommended that four bankers be released from the
\npossibility of criminal prosecution saying that the four have
\nbeen cooperative, meaning that they have settled their debts
\nunder the shareholders' settlement program.<\/p>\n
But even if the debtors fully comply with the program, the
\nmoney IBRA will be able to recover from them will be insufficient
\nto cover the initial losses.<\/p>\n
Analysts have long suspected that the debtors have made
\nminimal repayments, and surrendered assets only to later buy them
\nback from the agency at heavily discounted prices using third
\nparties.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mega-responsible-for-ibra-debtors-discharge-hamzah-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}