AGO investigating Mandiri loans extended to PT CGN

Eva C. Komandjaja and Urip Hudiono, The Jakarta Post, Jakarta

In the latest development in the Bank Mandiri alleged lending scam, AGO spokesman R.J. Soehandojo told reporters on Wednesday that prosecutors were now investigating loans extended to PT Cipta Graha Nusantara (CGN).

He said that the bank lent some Rp 160 billion (US$17.20 million) as part of a bridging loan facility to PT CGN in 2002 to help finance the acquisition of a company called PT Tahta Medan (TM).

But the bank later also extended an investment loan of $18.5 million, which prosecutors said had been made without conducting a full credit analysis, or a comprehensive analysis of the legal documents connected with the assets advanced in collateral.

"The second loan was also intended to repay part of the first loan," Soehandojo added.

The AGO is investigating a lending scandal involving the extending of more than Rp 12 trillion in loans to 28 companies. For the past few weeks, prosecutors have been investigating four companies, including CGN. Top officers of the four firms have been named suspects, and some have been detained, including those from CGN/TM.

The AGO on Tuesday also detained three former top officials of Bank Mandiri.

Previously, prosecutors had also found irregularities in a $4.7 million loan to the former owner of PT Siak Zamrud Pusaka, which had already changed hands at the time the loan was extended.

Nader Taher, the previous owner of the company, was detained for obtaining the loan using his former company's name when applying for the loan to Bank Mandiri. Nader once stood as a gubernatorial candidate in Riau Islands province.

Meanwhile, in another twist to the scandal the Financial Transaction and Report Analysis Center (PPATK) has found indications that a member of the House of Representatives is implicated.

PPATK chairman Yunus Husein told reporters on Wednesday that his office had found that a House member -- whom he referred to only by his initials, HM -- was among those who had received questionable loans.

"The loan HM received is particularly questionable as it was not used in accordance with the credit profile," he said.

Yunus further said that the PPATK's initial findings revealed that HM had used some $2 million of the loan for active trading in the stock of a British Virgin Islands-based information technology (IT) firm.

"The firm itself was the winner of the tenders for IT systems in three state-owned banks," he said.

In a hearing on Monday with the House legal affairs commission, Yunus said that HM had received a total of Rp 20 billion and $3.4 million in loans from Bank Mandiri.

Separately, an antigraft team set up recently by President Susilo Bambang Yudhoyono began its work of investigating corruption in state institutions.

"They are tasked with probing possible corruption in state- owned petroleum firm Pertamina, insurance firm Jamsostek, the management of the Gelora Bung Karno sports complex and also the State Secretariat itself," Soehandojo said without providing further details.