New loan audit won't affect criminal process<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
Finance Minister Boediono guaranteed on Tuesday that a new audit
\non the abuse of US$13 billion of Bank Indonesia emergency loans
\nwould not put an end to criminal investigations.<\/p>\n
He said the new audit would only determine the proportion of
\nburden that the government and Bank Indonesia each must shoulder.<\/p>\n
\" The legal process on the misused funds will carry on,\"
\nBoediono said during a hearing between the government and the
\nHouse of Representatives Commission IX on finance and state
\nbudgets.<\/p>\n
\"The results from the new audit will not undermine previous
\nfindings in any way,\" he added.<\/p>\n
Separately, the Attorney General's Office (AGO) announced
\nTuesday that it had recruited 50 prosecutors from around the
\ncountry to speed up investigations into the misuse of the funds.<\/p>\n
AGO spokesman Muljohardjo was quoted by Antara as saying that
\nthe newly-recruited prosecutors would first focus their
\ninvestigations into the channeling of the loans to 11 banks.<\/p>\n
The banks, since closed by the government, are Bank Jakarta,
\nBank Umum Majapahit, Bank Kosa Graha Semesta, Bank Baja Citra
\nHasta Dana, Bank Manunggal, Bank Upindo Baja Internasional, Bank
\nDwipa Semesta, Bank Dana Hutama, Bank Papan Sejahtera, Bank Sewu
\nInternasional, and Bank Putra Surya Perkasa.<\/p>\n
Muljohardjo also said that the cases against three former
\ndirectors of Bank Indonesia responsible for channeling the loans,
\nnamely Hendro Budianto, Paul Sutopo, and Heru Supraptomo, were
\ncurrently being built.<\/p>\n
The Supreme Audit Agency (BPK) revealed last year that some Rp
\n138.4 trillion (around US$13 billion) of the total Rp 144.5
\ntrillion Bank Indonesia loans -- channeled to banks facing
\nmassive runs at the peak of the country's 1997 financial crisis
\n-- had been misused by the banks for currency speculation,
\nlending to affiliated companies and buying assets. The loans were
\nonly supposed to pay depositors of banks facing runs. The agency
\nblamed it on the weak supervision of Bank Indonesia.<\/p>\n
A separate investigation conducted by a House of
\nRepresentative-appointed special team confirmed the BPK findings.<\/p>\n
A huge chunk of the loans had been channeled to banks owned by
\nbusinessmen close to the family of former president Soeharto.<\/p>\n
But so far none of those responsible for the massive abuse
\nhave been charged let alone put behind bars.<\/p>\n
Following the BPK findings the government initially declined
\nto cover the loans putting Bank Indonesia at the risk of
\nbankruptcy. It was only after intensive lobbying facilitated by
\nleaders of the House commission IX that the government agreed in
\nNovember last year to cover most of it, leaving Bank Indonesia
\nwith the obligation to only cover some Rp 24.5 trillion of the
\nloans. But the agreement was not yet final.<\/p>\n
The new plan to appoint an independent auditor initially
\nraised concerns that it would lead to an end to the criminal
\ninvestigation.<\/p>\n
During the hearing, legislators questioned the government's
\nseriousness in combating corruption cases, arguing that the
\nprevious investigations should have given the government a clear
\npicture as to who was responsible.<\/p>\n
\"There is a strong tendency that the government is lacking the
\ncourage to resolve the matter,\" legislator Rizal Djalil said
\nduring the hearing.<\/p>\n
\"The data revealed by the previous investigations should be
\nmore than enough to resolve the case.\"<\/p>\n
Another lawmaker Sukowaluyo Mintohardjo concurred, saying:
\n\"The existing data should be enough to be taken into
\nconsideration for the government to take actions.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-loan-audit-wont-affect-criminal-process-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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