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)