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)