AGO names Mandiri CEO, directors suspects
Eva C. Komandjaja, The Jakarta Post, Jakarta
Bank Mandiri president director E.C.W. Neloe was named as a suspect by the Attorney General's Office (AGO) on Wednesday for his alleged role in the lending scam at the giant state-owned bank.
Two other top Mandiri officials, vice president I Wayan Pugeg and director for corporate banking M. Sholeh Tasripan, were also named suspects. None of the three have been detained.
Office spokesman R.J. Soehandojo said AGO investigators would charge the three in connection with their roles in the lending scam.
"Our investigators found indications that these three Mandiri directors were strongly connected to this case," he added, but refused to give details.
The AGO has been investigating loans allegedly given improperly to four companies. But it has said that the investigation would be later expanded to cover a total of 28 companies involving loans of more than Rp 12 trillion (US$1.28 billion).
Attorney General Abdul Rahman Saleh had previously said that he suspected the loans given by the bank to four firms were meant to become bad loans from the outset; indicating likely conspiracy and corruption in the lending.
Responding to the statement, Soehandojo said: "If the Attorney General has said so, that must be the reason the three Mandiri directors were named as suspects today".
Deputy Attorney General for Fraud Hendarman Supandji earlier said the suspects appeared to have intentionally flouted prudential banking principles when they extended loans to the four companies.
However, Soehandojo could not mention the total amount of state losses caused by the bad loans given by the bank to the 28 companies saying that the Supreme Audit Agency (BPK) had not finished auditing them.
"The suspects will be interrogated again on Monday. We might get additional information from this interrogation. It is also up to the investigators whether they will arrest them on Monday or not," Soehandojo said.
He said that the suspects would be charged for offenses under the Corruption Eradication Law No. 31/1999.
Prosecutors have repeatedly questioned a series of Bank Mandiri directors in relation to this case.
The AGO earlier arrested four suspects from four companies -- PT Lativi Media Karya (LMK), PT Siak Zamrud Pusaka (SZP), PT Cipta Graha Nusantara/Tahta Medan (CGN/TM) and PT Artha Bhama Texindo/Artha Tri Mustika Texindo (ABM/ATM) -- all which are still under intensive investigations.
"(The) Deputy Attorney General for Fraud submitted travel ban requests for the three suspects to the Attorney General last Tuesday," Soehandojo said.
The Wednesday announcement will give State Minister of State Enterprises Sugiharto a good reason to replace the three top Mandiri officials. He previously affirmed that the government would replace any executives of state enterprises named suspects in corruption cases.
Bank Mandiri is scheduled to hold its annual shareholders' meeting on May 16, with one of the items on the agenda being a management shakeup following the disclosures surrounding the alleged lending scam.
Soehandojo said the Supreme Audit Agency (BPK) had finished auditing four more companies -- PT Domba Mas, PT Batavindo, PT Bosowa and PT Bakrie Telecom -- and had submitted its results to Hendarman on Wednesday.
Coordinating Minister for the Economy Aburizal Bakrie owns the Bakrie Group, including its subsidiary Bakrie Telecom. Last year's audit of publicly listed PT Bakrie & Brothers showed that PT Bakrie Telecom secured a long-term loan worth Rp 548.2 billion from Bank Mandiri.