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)