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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