80 BI officials to be questioned over scam

80 BI officials to be questioned over scam

JAKARTA (JP): Bank Indonesia senior deputy governor Anwar
Nasution said on Friday that 80 central bank officials will be
questioned over a possible involvement in fraud related to the
disbursement of massive government liquidity supports to
commercial banks between 1998 and 1999.

"There are many ... I think about 80 (officials) have been
mentioned (by the Attorney General's Office)," Anwar told
reporters in response to a question about whether one of the
central bank's deputy governors would be summoned by the Attorney
General over the alleged wrongdoing.

Anwar said that the officials included some who had already
retired. But he said that this (investigation) did not
necessarily mean that the officials were involved in the fraud.

Anwar said that it was up to the legal authorities to decide
on the extent of their involvement.

The government, via Bank Indonesia, disbursed around Rp 144.5
trillion (US$17 billion) in emergency loans to 48 commercial
banks to support them during massive bank runs as confidence in
the industry tumbled during the peak of the country's financial
crisis.

But the Supreme Audit Agency (BPK) said in its recent
investigational audit that around Rp 138.4 trillion of the loans
had been misused or were extended in violation of bank
regulations.

BPK said the emergency loans were supposed to be used only to
reimburse depositors during the massive runs, but many of the
banks used the funds for currency speculation, lending to
affiliated business groups or repaying the loans of subsidiaries.

BPK also blamed the central bank's weak supervision for the
widespread misuse of the emergency credits.

Finance Minister Bambang Sudibyo said earlier this week that
he would immediately request the Attorney General's Office impose
a travel ban on the former owners and management of the some of
the commercial banks to facilitate the investigation.

BPK chief Satrio B. Joedono has said that he had given the
list of bankers and bank owners that should be banned from
traveling out of the country to the Finance Minister, but it was
not clear why Bambang had not yet announced the travel bans.

There have been rumors that two Bank Indonesia deputy
governors were planning to resign due the allegations.

Anwar said that he had not received any resignation letters,
but he believed that any officials alleged of wrongdoing should
temporarily leave their post to facilitate the investigation.

Sjahril

Separately, the Attorney General's Office announced Friday
that it had extended the detention of Bank Indonesia Governor
Sjahril Sabirin for another 20 days to continue investigation of
his alleged involvement in the high profile Bank Bali scandal.

Attorney General's Office spokesman Yushar Yahya said that
there should be sufficient evidence to bring Sjahril to court by
the end of this month.

Sjahril's detention was supposed to end today (Saturday).

The Bank Bali scandal centers on the illegal transfer of some
US$80 million from the bank to a private firm linked to the
Golkar Party. The scandal contributed to the failure of former
president B.J. Habibie to be reelected in last year's general
election.

Asked to comment on the extension of Sjahril's detention,
Anwar said that he expected a speedy and fair resolution to the
case.

He said that many people including some from overseas have
expressed concern over the detention of Sjahril.

"We feel very sad because our governor is being detained. We
hope this can be settled quickly and fairly," Anwar added.

The Attorney General's Office detained Sjahril on June 21
following months of high profile quarrels with President
Abdurrahman Wahid over various issues. (rei/bby)