Soedradjad questioned on BLBI malfeasance<\/p>\n
JAKARTA (JP): Former Bank Indonesia (BI) governor Soedradjad
\nDjiwandono was again questioned on Wednesday about alleged misuse
\nof some Rp 144.5 trillion in liquidity supports to 48 commercial
\nbanks between 1997 and 1999, Attorney General's Office spokesman
\nMuljohardjo said.<\/p>\n
But Muljohardjo added that the questioning was focused on
\nSoedradjad's knowledge of the liquidity assistance channeled to
\nBank Modern.<\/p>\n
\"Soedradjad admitted that some Rp 766 billion out of the Rp
\n2.5 trillion extended to Bank Modern was misused. Instead of
\ndisbursing the liquidity assistance to reimburse depositors, the
\nbank allocated the money for other purposes, including buying
\nforeign currency for speculative purposes and lending to its
\naffiliated business groups,\" Muljohardjo said.<\/p>\n
Muljohardjo said that Soedradjad, who was at the central
\nbank's helm when the alleged corruption took place, admitted that
\nthe disbursement of the emergency loans was with the consent of
\nthe central bank's board of directors and was designed to help
\nthe banks cope with massive deposit withdrawals during the peak
\nof the financial crisis.<\/p>\n
During the 12-hour interrogation, Soedradjad also admitted
\nthat the central bank's board of directors issued Ruling No.
\n30\/50\/DIR\/UKP on Dec. 30, 1997, which extended special overnight
\nliquidity supports on condition that the recipients should never
\nhave a negative balance at the central bank after Dec. 31, 1997.<\/p>\n
\"If the banks failed this requirement, they were given one day
\nto repay the loans or they would be excluded from bank clearing
\nfor five days in a row. Otherwise, the banks were to be merged,
\nnationalized or wound up.<\/p>\n
\"However, although the banks repeatedly had negative balances
\nbetween Dec. 31, 1997 and December 1998, the central bank kept
\ndisbursing the loans,\" Muljohardjo told journalists while
\nrevealing the results of the prosecutors' interrogation of
\nSoedradjad.<\/p>\n
An audit by the Supreme Audit Agency (BPK) unveiled that some
\n95 percent of the emergency loans were either misused or extended
\nin violation of banking regulations.<\/p>\n
Muljohardjo also referred to BI letter No. 23\/237\/UPG dated
\nFeb. 28, 1991, which stated that the central bank could only
\ndisburse three percent of its deposits as insurance during a bank
\nrun.<\/p>\n
\"But our investigation found that instead of reimbursing three
\npercent of the deposits, the central bank channeled emergency
\nloans amounting to as much as the commercial banks' debit
\nbalances,\" he said.<\/p>\n
Also quizzed on Wednesday were two BI directors, Aulia Pohan
\nand Miranda Goeltom.<\/p>\n
State prosecutors also quizzed the former and active BI
\nexecutives over their knowledge of the emergency loans extended
\nto the now defunct Bank Dagang Negara Indonesia (BDNI).<\/p>\n
This bank received some Rp 37 trillion in liquidity assistance
\nfrom Oct. 15, 1997 to Jan. 29, 1999. Prosecutors found that some
\nRp 4 trillion of this sum was misused by the bank's director
\nSjamsul Nursalim, who has been named a suspect in the case.<\/p>\n
Muljohardjo said that the disbursement of liquidity facilities
\nto BDNI after December 1997 was based upon an agreement signed by
\nAulia and Miranda in their capacities as directors.<\/p>\n
However, Miranda claimed to know nothing of the liquidity
\nsupport, saying that she had just been installed as director for
\none day when the loan was disbursed to the bank.<\/p>\n
\"The prosecutors asked me about definitions...I didn't know
\nanything about BDNI. It's strange I was questioned for something
\nI wasn't involved in,\" she said before leaving the Attorney
\nGeneral's Office compound after the three-hour questioning.<\/p>\n
The state prosecutors expect former Supreme Advisory Council
\nchief A.A. Baramuli on Thursday for questioning as a witness in a
\nloan scandal involving a central bank subsidiary, the Amsterdam-
\nbased N.V. Indover Bank. (bby)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soedradjad-questioned-on-blbi-malfeasance-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}