BPK to audit debt-free status of former bankers
BPK to audit debt-free status of former bankers
The Jakarta Post, Jakarta
The Supreme Audit Agency (BPK) said on Friday it would carry out
an audit into assets surrendered by former bank owners to the
government as repayment of debts.
BPK chairman Satrio B. Judono said that if the agency found
irregularities, it would revoke the debt-free status given by the
government to the former bank owners.
"We'll audit all (of the assets)," he said, while also
replying "yes" when asked whether BPK would revoke the debt-free
status if the audit found something fishy.
He did not say, however, when the audit would start.
The government has so far confirmed debt-free status for 13
former bank owners, including The Nin King, Sudwikatmono, Hendra
Liem, Ibrahim Risjad, Anthony Salim, Hashim S. Djojohadikusumo,
Njoo Kok Kiong, Honggo Wendratmo, Suparno Adijanto, Andy
Hartawan, Ganda Eka Handria, Philip S. Widjaja and Mulyanto
Tanaga.
Siti Hardianti Rukmana, Sjamsul Nursalim and Bob Hasan are
also expected to soon follow suit, pending ongoing asset
verification by the Financial Sector Policy Committee (FSPC), a
grouping of senior economic ministers.
The government channeled some Rp 144.5 trillion (US$16.9
billion) in funds to troubled banks during the late 1990s
financial crisis. A BPK audit later found out that most of the
funds had been abused by bank owners, including for currency
speculation and lending to affiliated businesses. The former
bank owners have also been charged with violating the legal
lending limit by channeling most of their banks' money to
affiliated companies, thus hurting the banks and forcing the
government to bail them out.
After years of negotiation, some former bank owners finally
agreed to repay the debts by surrendering a combination of assets
and cash. The government promised them debt-free status if they
were deemed cooperative in repaying their debts.
The status would allow the debtors to remain immune from
criminal indictment for violation of banking regulations in the
past.
According to the Indonesian Bank Restructuring Agency (IBRA),
which was assigned to collect the assets and sell them to raise
cash for the government, many of the assets surrendered by the
former bank owners have had a low recovery rate of around 28
percent, meaning that taxpayers will have to cover the remaining
burden.
IBRA was closed down in February after more than six years in
operation.
Both IBRA and the government have been strongly criticized for
granting debt-free status to former bankers, and for failing to
fully recover the state funds.
But the BPK audit plan may provide a glimmer of hope that
justice might finally prevail.
On the other hand, it could also further erode confidence in
the government for its lack of commitment to providing certainty
in the execution of its own policies.