Bank Bali bosses prohibited from overseas travel

Bank Bali bosses prohibited from overseas travel

JAKARTA (JP): The former directors of Bank Bali and key
executives of PT Era Giat Prima (EGP) were banned from traveling
overseas for facilitating an investigation into their alleged
involvement in the suspected Rp 546 billion (US$78 million) fraud
of the bank.

National Police spokesman Brig. Gen. Togar M. Sianipar told
reporters on Monday that Director General of Immigration Mudakir
was officially asked on Saturday to prohibit the six executives
from going overseas.

"The executives will soon be thoroughly investigated by the
National Police," Togar said.

"Once travel bans are issued, the suspects can't leave the
country until the investigation is over," Togar added.

Togar identified the main potential suspects as Setya Novanto
and Djoko Sugiarto Chandra of EGP and Rudy Ramli, Rusli Suryadi,
Firman Soetjahja and Henri Kurniawan, formerly members of Bank
Bali's board directors before the bank was taken over by the
Central bank on July 23.

Another suspect, IBRA deputy chairman Pande Lubis, is not
however, subject to the travel ban.

"We have started listing names of main witnesses who will be
summoned for questioning. They could include banking law expert
Pradjoto and Bank Indonesia (BI) executives," Togar said.

He said the witnesses would be summoned in less than a week.

The Indonesian Bank Restructuring Agency (IBRA) earlier
confirmed allegations made by Pradjoto that Bank Bali paid Rp 546
billion to private firm EGP for recouping Rp 904 billion in
interbank claims on closed-down banks.

IBRA chairman Glenn S. Yusuf contended, however, that the
repayment of interbank claims on closed-down banks did not need
to use the services of any third party, including EGP, as the
claims were insured by the agency through a government blanket
guarantee program.

Reports say that Bank Bali used the services of EGP because
the bank owner lost patience with IBRA after waiting for months
for repayment.

Setya Novanto, also a vice treasurer of the ruling Golkar
Party, nonetheless contended that his deal with Bank Bali
was based on a cession agreement, a normal business arrangement.

But IBRA said the cession deal between Bank Bali and EGP was
unusual as it did not involve an up-front payment by EGP for Bank
Bali's interbank loans.

Togar added that the National Police had strong evidence,
implicating that the suspects, mainly Pande Lubis and Setya
Novanto, were involved in the scandal.

"We have clear evidence that irregularities did take place in
the reimbursement of Bank Bali's interbank loans and most of the
booty was suspected to have gone into the pockets of the two main
suspects," he said.

When asked if the police had any evidence at all on the
involvement of high-ranking government officials or other IBRA
executives, Togar said no.

Pradjoto claimed that several other high-ranking government
officials close to President B.J. Habibie were implicated in the
scandal. (ylt/emf)