Andromeda files suit against govt
Andromeda files suit against govt
JAKARTA (JP): Bank Andromeda's directors filed a lawsuit at
the State Administrative Court here yesterday against Minister of
Finance Mar'ie Muhammad and Governor of Bank Indonesia J.
Soedradjad Djiwandono over the closure of their bank.
Bambang Trihatmodjo, President Soeharto's second son and a 25
percent shareholder of Bank Andromeda, has made angry public
statements over the last two days concerning the ministerial
decree liquidating the bank while threatening to file a lawsuit.
The suit was filed yesterday morning by a team of lawyers
which included O.C. Kaligis, Rudhy Lontoh, Hotman P. Hutapea and
Denny Kailimang.
It was filed on behalf of Bank Andromeda's president Nico
Mailangkay and Director Uthan A. Sadikin.
The lawsuit demands that the ministerial decree closing down
the banks be revoked.
Kaligis said the basis for the lawsuit was law No. 5/1986 on
the State Administrative Court which guarantees the people's
right to sue the government for policies that violated existing
laws and regulations.
"Bank Indonesia cannot liquidate a bank just like that. It's
not right and it is a violation of the government regulations on
bank liquidation procedures," Kaligis told reporters.
After accepting an aid package from the International Monetary
Fund to help with the economic crisis, the government announced
Saturday the liquidation of 16 private banks.
Several of the banks closed were owned by politically well-
connected figures.
The government maintained that the financial conditions of
these banks were unhealthy.
As a major shareholder, Bambang admits that Bank Andromeda may
have violated some rules, namely the legal lending limit, but
argues that this was common for Indonesian banks.
Bank Andromeda was liquidated with Ministry of Finance decree
No. 528/KMK.017/1997 which was issued after receiving a
recommendation from Bank Indonesia.
Kaligis, after presenting the suit to Chief of the State
Administrative Court Lintong Oloan Siahaan, argued that the
decrees violated regulations concerning bank liquidations.
He said that there were also several steps that the government
must follow before revoking a bank's business permit.
"Among other things the regulation says there are procedures
to be followed such as changing the board of directors, and
injecting more capital before deciding to close the bank," he
argued.
The suit also claims that the plaintiff had come forward with
the intent of injecting fresh money worth Rp 350 billion
(US$106.06 million) to save the bank, but was rejected by the
government.
State Administrative Court Chief Lintong Oloan Siahaan told
journalists that it would take at least a week for the court to
study the suit.
He said if the case was tried, one "special judge"
knowledgeable in banking and finance affairs would be included in
the five-panel judge to hear the case.
Separately, when asked by journalists Minister of Justice
Oetojo Oesman said the suit was an acceptable move which every
citizen had the right to make.
"Filing a lawsuit is acceptable, but it is the court who
decides whether the case can be heard or not," Oetojo said after
attending a hearing at the House of Representatives yesterday.
But Oetojo quickly defended the Minister of Finance's
authority to revoke the licenses of the banks, saying that the
banks were institutions under his auspices.
"Violation of the ministry's rules always brings about legal
consequences," he said.
Separately, Deputy House Speaker Syarwan Hamid praised the
legal effort pursued by the management of the closed bank, but
warned them against improper conduct.
"We live in a country which protects everybody's legal rights.
But please don't go beyond the rules. This is just a call for the
bank owners to think of national interests," Syarwan of the Armed
Forces faction said. (aan/amd)
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