Attorney General begins banking investigations

Attorney General begins banking investigations

JAKARTA (JP): The Attorney General's Office has started the
process of investigating the management and owners of 14 troubled
banks receiving more than Rp 102 trillion (US$9.3 billion) in
Bank Indonesia liquidity support.

Bank Indonesia directors Iwan Prawiranata and Achyar Ilyas met
with senior officials of the Attorney General's Office on Monday
but declined to give out any significant information to
reporters.

"We're just discussing ways on how to recover BI's liquidity
support quickly," Achyar said.

Several bank owners and top officials attending the meeting
also attempted to avoid journalists' questions.

Minister of Finance Bambang Subianto has formally asked the
assistance of the Attorney General's Office in recovering the
central bank's liquidity support.

The government suspended seven banks in January and another
three banks last month in an effort to clean up the ailing
industry. It has also taken over four banks, including Bank
Central Asia, the country's largest private bank, and Bank
Danamon.

The 14 troubled banks have been given until Sept. 21 to return
the central bank's money.

Deputy Attorney General Soehadjono declined to comment about
the presence of the bankers at his office.

"I don't know why they're here. Why don't you just ask them
yourself," he told reporters.

Benny Suherman, owner of the suspended Bank Subentra, and
Samadikun Hartono, who controlled the suspended Bank Modern, were
seen being chased by reporters. They apparently managed to get
away without answering any questions.

Deputy Attorney General for special crime Antonius Sujata said
that even if the banks returned the money, his office would still
investigate them for suspected banking crimes.

"Returning the state's assets doesn't mean that they'll be
free from suspicion of certain crimes," he was quoted by Antara
as saying.

The bank owners and management have allegedly violated legal
lending limits by channeling most of their bank funds into
affiliated business groups. (rei)