Revisiting Baligate<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Before Buloggates I and II made their way into the headlines,
\nthere was Baligate. The political scandal erupting at Bank Bali
\nwas the first and by far the most devastating one to have shocked
\nIndonesia's political landscape.<\/p>\n
Baligate occupied local news reports for over a year and along
\nthe way helped drowned B.J. Habibie's presidency.<\/p>\n
The scandal erupted in mid 1999, when it was revealed that
\nBank Bali made use of the brokerage service of PT Era Giat Prima
\n(EGP) to recoup some Rp 3 trillion (about US$300 million) in
\ninterbank claims.<\/p>\n
The bank did reclaim Rp 900 billion, but had to pay Rp 550
\nbillion in \"brokerage fees\" to EGP, which turned out to have been
\nset up the then ruling Golkar party to fund its political
\ncampaign machinery.<\/p>\n
As the scandal unfolded, more high ranking officials became
\ntainted with the scandal, of whom Bank Indonesia Governor Sjahril
\nSabirin is the first to be convicted.<\/p>\n
British based Standard Chartered Bank Plc had also agreed to
\nbuy a 20 percent stake in the bank just shortly before the
\nscandal erupted.<\/p>\n
StanChart weathered the Baligate storm, yet later withdrew its
\nbid anyway with opposition from Bank Bali employees also being a
\nfactor.<\/p>\n
The International Monetary Fund (IMF) and the World Bank
\ndemanded a full disclosure on the Baligate scandal.<\/p>\n
But analysts have said Baligate as only the tip of the iceberg
\nwith many other shady deals are abound forcing local banks into
\nmoney machines for political parties.<\/p>",
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