Witnesses fail to satisfy prosecutors<\/p>\n
JAKARTA (JP): Central bank director for bank supervision
\nMaulana Ibrahim failed on Thursday to answer prosecutors'
\nquestions over the alleged misallocation of Rp 583.4 billion
\n(US$61.4 million) in Government Liquidity Support funds (BLBI) by
\nformer Bank Aspac director Hendrawan Haryono.<\/p>\n
Maulana told the South Jakarta District Court that he did not
\nunderstand the banking terms specified by prosecutor Sidik
\nLatuconsina.<\/p>\n
He was confused when Sidik asked: "Can the BLBI be used for
\nforeign exchange activities?"<\/p>\n
One of the judges, I.D.G. Putra Yadnya, said "You are a
\nsupervising director and you do not understand the questions.
\nWhat about us (judges)?"<\/p>\n
But Maulana testified that the BLBI funds could not be used by
\nBank Aspac owners and banks' related parties, including its
\naffiliated companies.<\/p>\n
"I know that Bank Aspac was a well-performing bank. But I did
\nnot know the bank's financial condition," he said.<\/p>\n
Maulana said he did not know the problems that Bank Aspac was
\nfacing until it was put under Indonesian Bank Restructuring
\nAgency (IBRA) supervision.<\/p>\n
He said Bank Aspac had received the government facility in the
\nform of promissory notes worth Rp 1.5 trillion.<\/p>\n
"The funds were cashed in 1997 before the bank's operation was
\nfrozen," he said.<\/p>\n
The official said the facility was provided by the government
\nto help ailing banks overcome liquidity problems during the
\nmonetary crisis.<\/p>\n
He said he did not know whether Bank Aspac had met the
\nrequirements to obtain the promissory notes, such as transaction
\ndocuments, 20-year discount facilities, fixed assets or other
\nloans, as he was not yet in his current post when the liquidity
\nsupport funds were disbursed to the bank.<\/p>\n
Thursday's hearing also heard the testimony of witness Zaenal
\nHasni, the central bank's executive supervisor, who also claimed
\nto have no idea about the disbursement of liquidity support funds
\nto Bank Aspac.<\/p>\n
Hendrawan, along with then Bank Aspac president Setiawan
\nHarjono, was arrested last April.<\/p>\n
Setiawan, who will be tried separately, has yet to appear in
\ncourt as he is receiving treatment at Mitra Keluarga Hospital in
\nEast Jakarta.<\/p>\n
Hendrawan's lawyer L.M.M. Samosir argued that liquidity
\nsupport fund cases involving another 47 banks had been settled
\nthrough IBRA offices.<\/p>\n
At a preliminary hearing, prosecutor Soetantyo said Hendrawan,
\n46, had violated Article 1 of Law No. 3\/1971 on corruption, which
\ncarries a maximum punishment of life imprisonment.<\/p>\n
Soetantyo said the defendant, along with Setiawan, had abused
\nhis authority to enrich himself or others at the expense of the
\nstate between February 1998 and February 1999.<\/p>\n
The prosecutor also accused Hendrawan of violating Article 49
\nof Law No.7\/1992 on banking. This Article carries a maximum
\nsentence of 15 years imprisonment.<\/p>\n
Soetantyo said Bank Aspac received Rp 583.4 billion from the
\ncentral bank in December 1997 as part of the government's
\nliquidity support scheme.<\/p>\n
However, after receiving the funds from the central bank,
\nHendrawan reportedly allocated a part of the money for foreign
\nexchange trading and to finance the operations of some
\ncorporations affiliated with Bank Aspac.<\/p>\n
Presiding judge Muchtar Ritonga adjourned the hearing until
\nnext Thursday to hear the testimony of two other central bank
\nofficials. (01)<\/p>",
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