Sjahril vows not to step down from BI<\/p>\n
JAKARTA (JP): Embattled Bank Indonesia Governor Sjahril
\nSabirin stressed on Monday that he would not resign from his post
\ndespite increasing criticism over the alleged mishandling of
\nbillions of dollars in emergency liquidity support to ailing
\nbanks between November 1997 and early 1998.<\/p>\n
Sjahril said that according to the new central bank law, his
\noffice term is for four years.<\/p>\n
\"I won't step down. If I resign because of pressure it means
\nthat I'm violating the law,\" Sjahril announced before attending a
\nmeeting with senior economics ministers.<\/p>\n
\"Those who apply pressure (for Sjahril to resign) also violate
\nthe law.<\/p>\n
\"So for the time being, I will just stay calm,\" he added.<\/p>\n
The central bank law, enacted in May 1999, guarantees Bank
\nIndonesia's independence from executive control. The law
\nstipulates that only the House of Representatives can remove a
\ncentral bank governor and only when the official is found to have
\nviolated the law.<\/p>\n
Rumors that Sjahril was considering resigning escalated last
\nweek after Minister of Investment and State Enterprises
\nDevelopment Laksamana Sukardi said on Thursday that he was
\nwilling to replace Sjahril. Laksamana is a former banker.<\/p>\n
President Abdurrahman Wahid hinted early this year that he
\nmight ask the House of Representatives to replace Sjahril
\nfollowing an audit that allegedly discovered irregularities in
\nthe transfer of the multibillion dollar bank liquidity support.<\/p>\n
Several legislators have also called on Sjahril to step down
\nto give way to the investigation of the case.<\/p>\n
Sjahril denied the rumors that he had submitted his
\nresignation to House Speaker Akbar Tandjung.<\/p>\n
But he said that he had submitted three names to the House as
\npossible candidates to replace deputy governor Iwan Prawiranata,
\nwhose term will expire in May.<\/p>\n
Sjahril declined to name the candidates, but sources claim
\nthey were deputy governor Aulia Pohan and senior Bank Indonesia
\nofficials Burhanuddin Abdullah and C. Harinowo.<\/p>\n
He also dismissed rumors that Iwan's replacement was related
\nto the alleged liquidity support scandal.<\/p>\n
Sjahril added that starting in May, Bank Indonesia would only
\nhave six deputy governors. At present there are seven.<\/p>\n
The central bank provided some Rp 164.5 trillion (US$23
\nbillion) in liquidity support to ailing banks when the country's
\neconomic crisis deepened.<\/p>\n
A general audit conducted by the Supreme Audit Agency (BPK)
\nlast December revealed that the central bank had violated
\nprocedures in the transfer of some Rp 80 trillion of the
\nliquidity support.<\/p>\n
Bank Indonesia has so far rejected the BPK audit report.<\/p>\n
The agency is currently conducting an investigative audit into
\nthe central bank and recipient banks to clarify the matter. The
\naudit is expected to be completed in May.<\/p>\n
Bank Indonesia senior deputy chairman Anwar Nasution last week
\ndefended the central bank governor, saying that Sjahril should
\nnot be held responsible for the alleged mishandling of the
\nliquidity support because the alleged irregularities took place
\nbefore Sjahril took over from the previous governor, Soedradjad
\nDjiwandono, in February 1998.<\/p>\n
The government provided the emergency liquidity support in a
\nbid to help banks stay afloat amid plunging confidence in the
\nindustry. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sjahril-vows-not-to-step-down-from-bi-1447893297",
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"sponsor": "Okusi Associates",
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