Soedradjad questioned over loan scandal<\/p>\n
JAKARTA (JP): Former Bank Indonesia (BI) governor Soedradjad
\nDjiwandono was questioned at the Attorney General's Office on
\nWednesday over a loan scandal which allegedly caused the central
\nbank some US$1 billion in losses.<\/p>\n
Prosecutor Budiman Rahardjo said the 24 questions posed to
\nSoedradjad during the seven-hour questioning were about the
\nlatter's acknowledgement and responsibility in financing
\ncreditors through two of BI's overseas subsidiaries.<\/p>\n
\"Soedradjad was also questioned over the central bank's fund
\nallocation policy between 1993 and 1998, when the funds were
\nallocated. Some of the funds, for example, went to PT Bahana,\" he
\nsaid, without elaborating.<\/p>\n
Deputy Attorney for special crimes Bachtiar Fachri Nasution
\nsaid that the preliminary investigation found that there was a
\nconnection between the disbursement of money from BI to the
\nsubsidiaries, namely Amsterdam-based N.V. Indover Bank and the
\nlatter's affiliated Hong Kong-based Indover Asia Ltd., and the
\nbank run before the crisis in 1997.<\/p>\n
\"The investigation is to determine the exact amount of the
\nfunds disbursed to cope with the bank run,\" he said.<\/p>\n
The prosecutors named two bankers as suspects last August,
\nformer president director of Indover Bank Sidharta S.P. and
\nformer managing director of Indover Asia Permadi Gandapraja.<\/p>\n
They have been accused of violating the bank's prudential
\nprincipal in extending credit by disbursing loans without
\nproperly examining the lenders' capability to repay the loans.<\/p>\n
The money distributed to the two banks came from, among other
\nsources, BI's foreign exchange reserves.<\/p>\n
The preliminary investigation found that there were
\nirregularities in several loan agreements where there was
\nintervention from executives of the central bank and that the
\ncredits were extended to several people known as the inner circle
\nof former president Soeharto.<\/p>\n
Soedradjad's predecessor, Adrianus Mooy, testified last year
\nthat the credits were initially provided in order to develop the
\nindustrial sector, including the timber and forestry industry, in
\nthe eastern regions of Indonesia.<\/p>\n
Appearing to be exhausted, Soedradjad said that as
\ncommissioner of the subsidiaries, he was being summoned to
\nexplain about the problems faced by the foreign-based banks and
\nthat there was no intervention by BI executives in the loan
\ndisbursements.<\/p>\n
\"There was no intervention... I cannot give you details of
\nthe examinations made on the lenders' capabilities, but probably
\nlater after the completion of this questioning,\" he told
\njournalists before leaving the Attorney General's Office complex.<\/p>\n
Head of the case's investigation team, Muchtar Arifin, said
\nthe prosecutors were about to leave for Amsterdam later this
\nmonth to question 10 foreigners, who were once executives of
\nIndover Bank, as witnesses to the case. (bby)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soedradjad-questioned-over-loan-scandal-1447893297",
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