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)