AGO to probe bad debtors linked with govt officials
AGO to probe bad debtors linked with govt officials
Rendi A. Witular, The Jakarta Post, Jakarta
Stepping up their investigations into the alleged lending scandal
at state Bank Mandiri, prosecutors plan to probe a number of bad
debtors who have links with top government officials.
Deputy attorney general for fraud Hendarman Supandji said on
Wednesday the Attorney General's Office (AGO) would probe more
firms related to the alleged lending irregularities at the
nation's largest bank, including those having links with high-
profile figures.
"We are not afraid of probing them (firms linked with
government officials). The President's instruction is clear that
we should investigate this case thoroughly," said Hendarman at
the State Palace.
Attorney General Mochammad Abdurrahman Saleh refused to
comment further on the case, saying he had ordered Hendarman to
resolve the case within three months.
The AGO opened an investigation into the Mandiri last month
after the Supreme Audit Agency (BPK) released the results of its
2004 audit of the bank.
Prosecutors say they are investigating alleged irregularities
in the bank's lending practices.
Prosecutors have summoned top Bank Mandiri officials for
questioning, including the bank's president ECW Neloe, but have
not named any of these officials suspects in the case.
Hendarman said the AGO had not discriminated between
individuals when investigating the case.
"There is no discrimination in the investigations. Companies
linked with the current administration will also be probed. I
have received no pressure from any senior government official
when doing my job," he said.
The AGO is currently focusing its probe on loans worth Rp 1
trillion (about US$105 million) given to five companies -- PT
Siak Zamrud Pusaka, PT Citra Graha Nusantara/Tahta Medan, PT
Lativi Media Karya and PT Artha Bhama Texindo/Artha Tri Mustika
Texindo.
The five are among 28 companies reported by the Supreme Audit
Agency (BPK) to have allegedly received loans from Bank Mandiri
worth more than Rp 12 trillion without proper lending procedures.
According to the BPK report, cement maker PT Semen Bosowa
Maros and coal producer PT Arutmin Indonesia are among the 28
companies.
Semen Bosowa is owned by the nephew of Vice President Jusuf
Kalla, while Arutmin has a close links with Coordinating Minister
for the Economy Aburizal Bakrie.
Kalla and Aburizal acknowledged that they had an indirect link
with the companies but insisted the companies would have no
problems servicing their loans.
Based on the report, Bosowa has some Rp 1.44 trillion of debts
in Bank Mandiri classed in "level 2" debt category, while Arutmin
has some US$88 million "level 1" debts.
Both categories mean the companies have no serious
difficulties servicing the loans. A level 5 loan is categorized
as a bad debt.
Hendarman said the prosecutors would expand the investigation
to look at such companies during its meeting with the BPK
scheduled on Monday, with the agency pledging to submit detailed
case files about the remaining 23 companies to the AGO.
Rendi A. Witular, The Jakarta Post, Jakarta
Stepping up their investigations into the alleged lending scandal
at state Bank Mandiri, prosecutors plan to probe a number of bad
debtors who have links with top government officials.
Deputy attorney general for fraud Hendarman Supandji said on
Wednesday the Attorney General's Office (AGO) would probe more
firms related to the alleged lending irregularities at the
nation's largest bank, including those having links with high-
profile figures.
"We are not afraid of probing them (firms linked with
government officials). The President's instruction is clear that
we should investigate this case thoroughly," said Hendarman at
the State Palace.
Attorney General Mochammad Abdurrahman Saleh refused to
comment further on the case, saying he had ordered Hendarman to
resolve the case within three months.
The AGO opened an investigation into the Mandiri last month
after the Supreme Audit Agency (BPK) released the results of its
2004 audit of the bank.
Prosecutors say they are investigating alleged irregularities
in the bank's lending practices.
Prosecutors have summoned top Bank Mandiri officials for
questioning, including the bank's president ECW Neloe, but have
not named any of these officials suspects in the case.
Hendarman said the AGO had not discriminated between
individuals when investigating the case.
"There is no discrimination in the investigations. Companies
linked with the current administration will also be probed. I
have received no pressure from any senior government official
when doing my job," he said.
The AGO is currently focusing its probe on loans worth Rp 1
trillion (about US$105 million) given to five companies -- PT
Siak Zamrud Pusaka, PT Citra Graha Nusantara/Tahta Medan, PT
Lativi Media Karya and PT Artha Bhama Texindo/Artha Tri Mustika
Texindo.
The five are among 28 companies reported by the Supreme Audit
Agency (BPK) to have allegedly received loans from Bank Mandiri
worth more than Rp 12 trillion without proper lending procedures.
According to the BPK report, cement maker PT Semen Bosowa
Maros and coal producer PT Arutmin Indonesia are among the 28
companies.
Semen Bosowa is owned by the nephew of Vice President Jusuf
Kalla, while Arutmin has a close links with Coordinating Minister
for the Economy Aburizal Bakrie.
Kalla and Aburizal acknowledged that they had an indirect link
with the companies but insisted the companies would have no
problems servicing their loans.
Based on the report, Bosowa has some Rp 1.44 trillion of debts
in Bank Mandiri classed in "level 2" debt category, while Arutmin
has some US$88 million "level 1" debts.
Both categories mean the companies have no serious
difficulties servicing the loans. A level 5 loan is categorized
as a bad debt.
Hendarman said the prosecutors would expand the investigation
to look at such companies during its meeting with the BPK
scheduled on Monday, with the agency pledging to submit detailed
case files about the remaining 23 companies to the AGO.