Bapindo branch executive denies taking bribes

Bapindo branch executive denies taking bribes

JAKARTA (JP): A former Bapindo executive denied yesterday that
he took bribes from businessman Eddy Tansil for allowing the
latter to cash in huge sums of loans from the government bank
between 1989 and 1992.

Maman Suparman, formerly deputy manager of the bank's Jakarta
branch, told a court hearing that although it is normal practice
for bank executives to accept payments of gratitude from clients,
he did not receive a single cent from Tansil.

Maman, 48 years old, is being tried in South Jakarta District
Court on charges of colluding with Tansil, the owner of the
Golden Key Group, in allowing the latter to defraud Bapindo of
US$448 million.

The government prosecutors said Maman received a total of Rp
256 million ($122,000) from Tansil in return for changing some of
the terms of the loan contracts in violation of standard banking
practices. According to the prosecution, Maman was directly
responsible for $174 million that Bapindo paid out to Tansil.

Maman is being charged under the 1971 anti-corruption law
which carries a maximum penalty of life imprisonment.

His trial is now reaching its closing stages and yesterday the
court cross-examined the defendant, with the judges and
prosecutors probing into the sources of his wealth and assets.

They questioned how Maman, whose monthly income averaged Rp 6
million, could have paid Rp 365 million in cash in 1991 for a
house in Pulomas, an exclusive residential area in East Jakarta,
and spend another Rp 50 million for repairs.

The prosecution placed the value of the house at upwards of Rp
700 million.

Maman explained that the house purchase was financed entirely
out of his savings, including money left over from various field
and overseas trips. He said he also earned some money from stock
transactions.

Not from Tansil

He admitted that he received some payments from other clients
as a token of their gratitude for fixing their loans, but none
from Tansil. He added that this practice is common in Indonesian
banking, but stressed that he was always selective.

The prosecution had earlier alleged that Maman received Rp
500,000 from clients for every loan he helped arrange, and that
since 1984 he had amassed Rp 306 million from such payoffs.

Maman's lawyers denied the accusations and presented evidence
as to the sources of his income and savings.

The judges and the prosecutors also scrutinized Maman about
his role in changing the terms of the letters of credit issued by
Bapindo for Tansil.

The defendant admitted that he had overstepped his authority
in changing the terms from usance to red clause letters, but said
that he believed his actions had come with the approval of the
head office and the directors. He added that he communicated
every single transaction in connection with Tansil's loans to the
head office.

He said he thought that his subordinates at the branch office
had taken the minor details such as the sales contract and the
deposit required of Tansil. "I trusted my staff."

Asked whether he felt there were pressures from the head
office or the bank's directors, Maman replied "not directly, but
implicitly, yes." (rdm)