PwC unfair and speculative in Bank Bali audit, says Sjahril<\/p>\n
JAKARTA (JP): Bank Indonesia Governor Sjahril Sabirin lashed
\nout at international auditor PricewaterhouseCoopers (PwC) on
\nWednesday for being \"unfair\" to the central bank during its audit
\nprocess over the Bank Bali case.<\/p>\n
The central bank governor also said that several of the
\nauditor's conclusions were \"speculative\" because PwC did not
\nprovide Bank Indonesia with the transcript of its interview
\nresults with the central bank's officials to allow clarification
\nin case of any misleading content.<\/p>\n
He said that PwC had earlier agreed to such a routine, which
\nis a standard process.<\/p>\n
\"We feel that as an auditor, PwC does not understand the
\nstandard and ethics of the audit profession,\" he told the press.<\/p>\n
Sjahril said that since the PwC audit report was widely
\ncirculated, it was in the interest of Bank Indonesia to check the
\ntruth of the substance of the report.<\/p>\n
\"If there are things which are not true and tarnish the image
\nof Bank Indonesia and its officials, we have the right to make an
\nobjection... and if necessary, file a lawsuit,\" Sjahril said,
\nadding that the central bank had recorded the interview, which
\ncould be used as evidence.<\/p>\n
He declined to point out which of the conclusions were
\nspeculative.<\/p>\n
Sjahril acknowledged that he received the limited version of
\nthe PwC audit report, not the full report.<\/p>\n
PwC was assigned late last month by the Supreme Audit Agency
\n(BPK) to audit the central bank in relation with the Bank Bali
\nscandal, including a verification of Bank Indonesia's own audit
\nresult.<\/p>\n
The auditor handed over on Sept. 8 the audit result in long
\nand short forms as requested by BPK. The full report includes
\nthe flow of funds in the Bank Bali scandal. BPK said that the
\nfull report was only given to the police and Attorney General's
\nOffice.<\/p>\n
The Bank Bali scandal revolves around the transfer of Rp 546
\nbillion from the bank to PT Era Giat Prima (EGP) as a commission
\nfee for its help to recoup some Rp 904 billion in interbank loans
\non closed institutions. The loans were guaranteed by the
\nIndonesian Bank Restructuring Agency (IBRA), therefore the bank
\ndid not need another party's help.<\/p>\n
There are allegations that President B.J. Habibie's inner
\ncircle was involved in the scandal. The Habibie camp was accused
\nof using the money for political purposes in the run-up to the
\nNovember presidential election.<\/p>\n
Sjahril also lambasted PwC for saying that Bank Indonesia was
\nuncooperative, which hampered the audit process.<\/p>\n
\"That is completely untrue,\" he said, pointing out the
\nvaluable time Bank Indonesia officials devoted to interviews, and
\nthe various documents provided, including the central bank audit
\nfindings.<\/p>\n
\"PwC never thanked us for that,\" Sjahril said.<\/p>\n
He said that PwC demanded to be also allowed to audit personal
\nbank accounts of people not related to the Bank Bali and EGP
\ntransaction, which was impossible as it would violate banking
\nsecrecy codes.<\/p>\n
Sjahril said that the repayment of interbank loans to Bank
\nBali was not a decision made by Bank Indonesia, but by IBRA.<\/p>\n
He pointed out that the central bank's role was only to help
\nin the verification of Bank Bali claims as ordered by IBRA, and
\nacted only as the \"banker\" of the agency to transfer the payment.<\/p>\n
\"... It is IBRA's authority,\" he stressed in an apparent sign
\nof friction between Bank Indonesia and IBRA.<\/p>\n
Meanwhile, Minister of Justice\/State Secretary Muladi denied
\nrumors on Wednesday that B.J. Habibie was set to fire finance
\nminister Bambang Subianto and IBRA chairman Glenn Yusuf.<\/p>\n
Muladi told reporters at the State Palace that the President
\nsummoned both officials to his residence on Tuesday evening to
\ntell them \"to work more professionally\".<\/p>\n
Rumors circulated on Tuesday that Habibie planned to dismiss
\nboth officials out of displeasure over their testimonies on
\nMonday to the members of the House of Representatives disclosing
\nthe involvement of Habibie's chief adviser, Head of the Supreme
\nAdvisory Council Arnold Baramuli, in the Bank Bali scandal.<\/p>\n
In a related development, National Police chief of detectives
\nMaj. Gen. Da'i Bachtiar said on Wednesday that IBRA deputy
\nchairman Farid Harianto was declared a suspect in the ongoing
\npolice investigation into the scandal.<\/p>\n
\"He is currently being questioned for violating Banking Law
\nNo. 10\/1998 and Articles 372 and 378 of the Indonesian Criminal
\nCode on fraud and embezzlement,\" Da'i told reporters at the
\nNational Police Headquarters, following a meeting with eight
\nlegislators. (rei\/ylt\/prb)<\/p>",
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