Case against Djoko thrown out of court
Case against Djoko thrown out of court
JAKARTA (JP): The South Jakarta District Court dropped on
Monday the indictment of Djoko S. Tjandra, a defendant in the Rp
546 billion (US$73.7 million) Bank Bali scandal, on a legal
technicality.
Presiding Judge R. Soenarto said the judges did not have the
authority to try the case as there was insufficient evidence
implicating the defendant's involvement in the alleged crime.
"It is a civil case, not a criminal one. Therefore, it's the
authority of a team of judges in a civil case to rule whether the
cessie contract was illegal or not," he said while reading the
pretrial verdict in the hearing, attended by scores of spectators
and journalists.
He added that should the state have suffered losses from the
defendant's alleged corrupt practices, it could demand
compensation from the defendant in a civil case.
The Bank Bali scandal centers around a Rp 546 billion transfer
to PT Era Giat Prima (EGP) as a commission for services in
assisting the bank to recoup Rp 904 billion in interbank loans.
The presiding judge said the judges also found faults in the
indictment.
"It was too premature to declare the cessie agreement illegal,
as a team of judges in a separate civil case hasn't yet ruled the
cessie illegal. Therefore the indictment must be dropped," he
said.
The district court's verdict came less than a week after the
Jakarta State Administrative Court (PTUN) issued a ruling that
annulled a decision made by the Indonesian Bank Restructuring
Agency (IBRA) chairman on Oct. 15, 1999.
The Oct. 1999 decision annulled the cessie contract and
ordered the fund to be used as a recapitalization fund for Bank
Bali to improve its financial record.
Judge Soenarto said the case began in November 1998, when Rudy
Ramli, the president director of Bank Bali, held several meetings
with the defendant and Setya Novanto, both EGP executives, asking
the two people's assistance through PT Era Giat Prima to withdraw
the bank's fund, which had been borrowed by, among, others Bank
Dagang Nasional Indonesia (BDNI).
At the time, the Indonesian Bank Restructuring Agency (IBRA)
had closed down scores of banks, including BDNI, due to their
poor financial record and seized their assets.
Representing Bank Bali, Djoko took the initiative to request a
loan disbursement from IBRA in March 1999, but the agency
rejected the request due to technicalities, including the bank's
failure to meet the deadline for submitting the request to IBRA.
On Feb. 8, 1999, Djoko contacted government figures, including
Pande Lubis from IBRA, Dragono Lisan and Erman Munzir from Bank
Indonesia (Central Bank), and Bank Bali executives Firman
Soetjahja, Irvan Gunardwi and Henry Kurniawan to discuss the
matter.
Yet, the Central Bank rejected the request to allow IBRA to
disburse the loan.
Three days later, another meeting was held at Hotel Mulia
Senayan in Central Jakarta discussing the disbursement of the
loan. The meeting was attended by Djoko, Central Bank governor
Sjahril Sjabirin, then state minister of state enterprises Tanri
Abeng, Pande Lubis, then supreme advisory chairman A.A. Baramuli,
Setya Novanto and Firman Soetjahja.
In the meeting, which was led by Baramuli, it was proposed
that Bank Bali executives write a letter to IBRA's chairman
asking his assistance in recovering its interbank loans.
IBRA positively responded to the letter and disbursed the
fund, but in the absence of the finance minister's approval.
Djoko and Setya Novanto, who was also a treasurer of the
Golkar Party, were then given Rp 546 billion as commission for
assisting Bank Bali in recovering the fund.
The verdict prompted protest from chief prosecutor Ridwan
Moekiat.
"The judges have acted beyond their responsibility as they
were not supposed to touch the substance of the case in the
pretrial hearing," Ridwan said after the hearing.
"We'll soon file an appeal to the Jakarta High Court," he
added. (asa)