Indonesian Political, Business & Finance News

BPKP fire won't hamper work in BI investigation

| Source: JP

BPKP fire won't hamper work in BI investigation

JAKARTA (JP): Attorney General Marzuki Darusman asserted on
Friday that the loss of documents concerning the mishandling of
emergency support funds from Bank Indonesia due to a fire on
Thursday would not hamper investigations into the case.

"Even if the documents have been destroyed in the fire, this
incident will not derail the legal process and the ongoing
investigations," he told journalists after a consultative meeting
with the House of Representatives.

"Moreover, the Development and Finance Comptroller (BPKP) has
confirmed that they still have copies of the documents. I have
checked it myself," Marzuki was quoted by Antara as saying.

Deputy Attorney General for Special Crimes Ramelan also
claimed that the prosecutors' work would not be hampered by the
fire.

"The documents were not complete, anyway. And we can still
obtain similar data from witnesses' testimonies. We're not
worried," he said at his office.

Thursday's fire gutted the third floor of BPKP office in
Central Jakarta, where documents related to the alleged misuse of
the central bank's Rp 138.44 trillion liquidity support for
ailing banks and state institutions were stored.

BPKP reported that the loans were improperly used by banks as
they were not employed to reimburse depositors' money, but for
other purposes, including currency speculation, lending to
affiliated business groups and repaying subordinated loans.

The agency claimed that the misuse of the liquidity credits,
which were disbursed in late 1998, by the 43 banks was the result
of a lack of supervision by the central bank, then chaired by the
currently suspended governor Sjahril Sabirin.

The Attorney General's Office prosecuted four of the banks
last month, including Bank Deka, Bank Istimarat, Bank Pelita and
Bank Centris in several district courts in Jakarta.

This has led to speculation that Thursday's fire may have been
the result of arson.

Marzuki on Friday conceded that the fire was "peculiar", but
he refused to elaborate.

"I don't want to speculate. But, I think the fire at the BPKP
office and the bombing at the Jakarta exchange building last
month are strange," he remarked.

Separately, the prominent Indonesian Corruption Watch
organization charged that Thursday's fire was part of a
systematic effort to sabotage the case, pointing to the fact that
the fire centered on the floor where the office of the BPKP's
deputy chief of special cases was located.

"Regarding the importance of the documents, we suggest that
the BPKP immediately hand over its findings to law enforcers and
we urge police to start investigating this incident," ICW said in
a statement signed by its founder Teten Masduki.

ICW claimed that the destroyed papers concerned cases of
alleged graft in several government projects involving former
minister of mines and energy Ginandjar Kartasasmita and the
friends and family of former president Soeharto.(bby)

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