Banking scandal taints Golkar

JAKARTA (JP): The Rp 1.3 trillion ($620 million) scandal surrounding the government-owned Bank Pembangunan Indonesia (Bapindo) has tainted the public image of Golkar, the ruling political organization, its chairman Harmoko concedes.

Golkar is insisting that the case be solved thoroughly and that everyone involved be punished according to the law, Harmoko said as reported by the Antara news agency yesterday.

"We cannot afford to let Golkar's image be ruined and tainted by its cadres who are now in the government," Harmoko said in his most critical statement about the Bapindo scandal to date.

"I don't wish to name names in this corruption case at Bapindo," he said, "but the case, involving officials of the government, has damaged the public trust. Their behavior no longer satisfies the commitment to Golkar's big family. This must be eliminated."

All senior government officials are functionaries of Golkar who don the group's yellow T-shirts and mobilize their staff during general elections. Harmoko also serves as Minister of Information.

The Bapindo scandal has implicated not only the directors of the government bank, but also a number of senior government officials, most notably Sudomo, formerly coordinating minister of political affairs and security and now the chairman of the Supreme Advisory Council.

Other officials implicated include J.B. Sumarlin, Nasrudin Sumintapura and Adrianus Mooy, respectively the Minister of Finance, junior minister of finance and central bank governor. Sumarlin is now chairman of the Supreme Audit Agency.

The Attorney General's office has arrested Eddy Tansil, owner of the Golden Key Group to whom the Bapindo loans were issued, and three of the bank's executives. At least two of them will be tried this month.

Officials said they did not rule out the possibility of future arrests pending the results of the current investigation.

Attorney General Singgih, responding to questions, told reporters yesterday that he did not foresee any protocol problems in questioning Sudomo and Sumarlin despite their positions as head of high state institutions.

It had been suggested that the Attorney General must receive permission from President Soeharto before questioning either Sudomo or Sumarlin. Others have called for Sudomo's resignation or that he take a leave of absence to facilitate the official investigation.

Singgih said his office possessed the authority to question the officials. (emb/02)