Bank Aspac misallocated BLBI funds: Witnesses
Bank Aspac misallocated BLBI funds: Witnesses
JAKARTA (JP): Two Bank Indonesia officials said on Thursday
that former Bank Aspac director Hendrawan Haryono had
misallocated Rp 583 billion (US$61.4 million) out of the Rp 1.5
trillion Government Liquidity Support Funds (BLBI) it had
received from the central bank.
"We only approved the disbursement of the BLBI funds to help
Bank Aspac settle its liquidity problems," Askadi, the central
bank's deputy director of credit, told the South Jakarta District
Court hearing.
He said that he wasn't aware of Bank Aspac's financial
condition until he signed an approval for the BLBI funds
disbursement proposal filed by the bank.
"I signed the approval after I had received a memorandum from
the supervising department," he said.
He also said that he didn't know whether the disbursement had
followed the correct procedures.
"It was beyond my authority. I naturally thought that the
supervising department would know about this," he said.
Askadi, however, admitted that Bank Aspac deposited collateral
worth Rp 488 billion to secure the disbursement of Rp 413 billion
of BLBI funds in December 1998.
He said the collateral comprised of 534,535 square meters of
land, including some buildings, in six locations across Bogor,
some 60 kilometers south of Jakarta.
The official told presiding judge Muchtar Ritonga that he did
not examine the physical condition of the collateral, but signed
the approval for the funds disbursement.
"I just looked into the documents and entrusted the
examination of the collateral's physical condition to the
notary," he said.
He also said that he didn't appraise the bank's collateral, as
such an appraisal was only ever made by the debtor.
"You didn't examine the physical condition, nor appraise the
bank's collateral? This is an example why many banks' liquidity
problems must be settled in courts," is how judge I.D.G. Putra
Yadnya responded to Askadi's testimony.
Meanwhile, the central bank's deputy director for credit
investigation, Petrus Puspo Sungkowo, told Thursday's hearing
that he received a letter of authorization from the central
bank's board of directors to supervise ailing banks.
Puspo, who testified after Askadi, said that he was one of
three Bank Indonesia officials who signed the approval on Bank
Aspac's proposal for the disbursement of BLBI funds. The other
two were Askadi and Edi Budiman.
"Prior to approving the disbursement of BLBI funds, Bank
Indonesia formed a special team to supervise the ailing banks,"
he said.
He said the team's main duty was to supervise the BLBI funds
disbursement, so that it would not burden the state.
"After supervising several ailing banks, the team passed on
recommendations to the board of directors. The board then held a
meeting with all of the ailing banks," he said.
Puspo said Bank Aspac had received the discount facility in
the form of promissory notes worth Rp 1.5 trillion, but said that
he did not know whether Bank Aspac had met all the requirements.
Hendrawan, along with then Bank Aspac president Setiawan
Harjono, was arrested last April.
Setiawan, who will be tried separately, has yet to appear in
court because he is being treated at Mitra Keluarga Hospital in
East Jakarta.
At a preliminary hearing, prosecutor Soetantyo said Hendrawan,
46, had violated Article 1 of Law No. 3/1971 on corruption, which
carries a maximum sentence of life imprisonment.
However, Hendrawan reportedly allocated a portion of the money
for foreign exchange trading and to finance the operations of
some corporations affiliated with Bank Aspac.
Presiding judge Muchtar Ritonga adjourned the hearing until
next Thursday, when the court will hear the lawyers' statement.
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