Bambang, Glenn urged to resign

Bambang, Glenn urged to resign

JAKARTA (JP): The ruling Golkar Party urged on Friday that
President B.J. Habibie dismiss Minister of Finance Bambang
Subianto and chairman of the Indonesian Bank Restructuring Agency
(IBRA) Glenn S. Yusuf over the high-profile Bank Bali scandal.

Golkar legislator Thomas Suyatno said "responsibility for
policy mistakes must be taken by policy decision-makers, which in
this case are the Ministry of Finance and the chairman of IBRA".

"(We demand) that firm measures be taken against all
government officials, as well as officials from other
institutions who are directly or indirectly involved (in the
case)... in the form of dismissing them to allow a thorough
investigation," he said at an internal meeting of House
Commission VIII for the state budget and finance.

Following Thursday's hearing session on the Bank Bali affair
with the government and Bank Indonesia, the Golkar faction
released a 13-point statement calling for Bambang and Glen to
tender their resignations.

Thomas also said that if Bank Indonesia Governor Sjahril
Sabirin was found in the future to be directly or indirectly
involved in the affair, he would also have to resign.

The Bank Bali scandal was revealed in late July to the public
by banking law expert Pradjoto. He disclosed that some Rp 546
billion (US$70 million) was transferred in early July to private
firm PT Era Giat Prima (EGP) as a commission fee to help the bank
recoup some Rp 904 billion in interbank claims on closed-down
Bank BDNI.

Thomas said Golkar rejected Bambang's explanation that payment
of the Bank Bali interbank claims had followed due procedure.

Interbank claims on closed-down banks are guaranteed by IBRA
through the government blanket guarantee program.

At the hearing session, Bambang emphasized that the mistake
was not in the payment of the interbank claims -- as verification
occurred prior to payment -- but was "suspected" of occurring in
the transaction between former Bank Bali managers and EGP.

The United Development Party (PPP) faction has urged Bambang
and Glenn resign, or be temporarily suspended, until
investigation of the matter is completed.

The military faction and the Indonesian Democratic Party (PDI)
faction have not demanded the dismissal of the top two banking
officials.

During Thursday's hearing session, which ran from 10 a.m.
until 10 p.m., most of the commission VIII legislators were
apparently pushing Bambang and Glenn to acknowledge that a
mistake had been made.

But Bambang and Glenn maintained that payment of Bank Bali's
interbank claims had followed established procedures. They
declined to disclose the names of people involved in the scandal,
who are believed to be close confidantes of President B.J.
Habibie, saying the investigation was still underway.

The two promised the House that the audit process would be
completed in two weeks, with the National Police and the Attorney
General's Office to be consulted on further legal action.

Bambang said the government had hired international auditor
PricewaterHouseCooper so that the investigation would be
credible.

Bank Indonesia's Sjahril said he could not disclose the names
of those who had received the commission fee, citing banking
secrecy laws and the fact that the investigation was incomplete.

An informed source told The Jakarta Post late Thursday that
Habibie was preparing to dismiss Bambang and Glenn, but not
Sjahril.

Minister/State Secretary Muladi however, said on Friday
Habibie would not hastily dismiss the top two banking
authorities.

"We'll watch the developments. The House has not yet (had its
final say)," he said following a ceremony at the State Palace.

Muladi denied reports that Habibie had considered dismissing
the two banking authorities.

Separately, the National Mandate Party (PAN) urged the House
to thoroughly investigate the Bank Bali case, as it believed the
scandal involved powerful people close to the President.

The party said there were indications of efforts to scapegoat
individuals, with key players left untouched.

EGP is owned by businessmen Setya Novanto and Joko Chandra,
both of whom are affiliated to the ruling Golkar Party. There
have been allegations the commission fee was to help finance the
November presidential race of incumbent President B.J. Habibie.

A document containing the transcript of confessions made by
former Bank Bali president Rudy Ramli on the involvement of
Cabinet ministers, senior government officials and business
tycoons in the scandal was circulated on Thursday among
legislators and journalists.

The names included Bambang, Sjahril, Supreme Advisory Council
head A.A. Baramuli, State Minister of the Empowerment of State
Enterprises Tanri Abeng and Habibie's younger brother Suyatim
"Timmy" Habibie.

The Indonesian Democratic Party of Struggle (PDI Perjuangan),
the front-runner in the June elections, accused on Thursday one
of Habibie's brothers, four Cabinet ministers, two ruling Golkar
Party leaders, and five businessmen of direct involvement in the
scandal.

PDI Perjuangan however, declined to disclose the individuals'
names.

People familiar with the domestic power struggle said several
key Golkar figures, including chairman Akbar Tanjung and his
deputy Marzuki Usman, were blowing up the Bank Bali case in an
attempt to stop Habibie from being elected in November. (rei/prb)