BNI scam may lead to political war

BNI scam may lead to political war

Dadan Wijaksana and Kurniawan Hari, The Jakarta Post, Jakarta

While at first it was deemed solely a run-of-the-mill scam
confined to the banking sector, the Bank Negara Indonesia (BNI)
scandal has now taken on a political dimension, which could lead
to a brutal political war ahead of the 2004 elections, a top
political analyst said.

Ikrar Nusa Bakti, a researcher at the Indonesian Institute of
Sciences (LIPI), said on Tuesday that if recent responses to the
whole affair were any indication, the case was being used by one
party to discredit another, with no side bothering to fix the
root of the problem itself -- corruption.

"We should not let the leaders of parties make use of these
corruption cases to increase their bargaining position, or as
tools to attack and destroy other parties.

"If this happens, the outcome will be a political compromise,
not a legal solution," Ikrar told The Jakarta Post, adding that
it would further deteriorate public confidence in political
parties.

"I think we should all wait for the police investigation to
finish. Anyone who is found guilty -- be it businessmen, state
officials or politicians -- then they must be punished," he
added.

He was responding to rising reports linking the massive loan
scam with efforts by a political party to rake in as much cash as
possible for their election campaigns next year.

This week allegations have been reported that the case could
involve one of the top presidential candidates associated with
the Golkar party, the country's second largest. Chairman Akbar
Tandjung was the first to come out and clearly state he was not
involved.

However, many local media groups have reportedly alleged that
Coordinating Minister for People's Welfare Jusuf Kalla, Gen.(ret)
Wiranto, businessman Fadel Mohammad could have received funds
from people involved in the case. While Fadel serves as one of
Golkar's treasurers, Kalla and Wiranto are two of the party's
seven presidential candidates.

No clear evidence has been made official by the police so far,
but that has not stopped the flow of unofficial allegations.

Smita Notosusanto, director of Center for Electoral Reform
(Cetro) agreed that the current trend in the BNI scandal could
lead to a fierce political war ahead of the elections.

"Actually, this kind of thing also happened in the past
election. This is mostly because there is no clear regulation on
fund-raising mechanisms for political parties," Smita said.

While many welcomed the revelations, some also questioned why
the BNI case was unveiled at relatively the same time with the
emergence of reports of suspicious transactions involving one of
the sons of President Megawati Soekarnoputri, who also chairs the
Indonesian Democratic Party of Struggle (PDI-Perjuangan).

Megawati's son is close to winning a no-bid contract to build
housing complex on state land in Kemayoran, Central Jakarta.

State Minister of State Enterprises Laksamana Sukardi, a
senior member of PDI-Perjuangan, has asked the police to press
ahead with its investigations, hinting at his disappointment over
the police's seriousness in cracking down on the BNI case.

Such speculation and intrigue has given rise to suggestions
that the current trend could be a political tit-for-tat between
major parties.

Meanwhile, National Police Chief Gen. Da'i Bachtiar said on
Tuesday that the police had blocked 29 bank accounts belonging to
companies and individuals linked to the Rp 1.7 trillion BNI loan
scandal.

Speaking at a hearing with House of Representatives'
Commission II for security, law and home affairs, Da'i
said that the national police had also confiscated US$238,000 in
cash and documents relating to the case. The Police had also
detained eight people so far.

Da'i added that his investigators had so far found no
indication of a connection between the BNI scandal and the seven
Golkar presidential candidates.