Convict, suspect head public institutions

Convict, suspect head public institutions

The Jakarta Post, Jakarta

A convicted corruptor and a detained graft suspect now lead
two of the country's most important public institutions,
respectively Bank Indonesia and the House of Representatives.

House speaker Akbar Tandjung, currently detained as a suspect
in the Bulog II scandal, and Bank Indonesia Governor Sjahril
Sabirin, sentenced to three years jail in the Bank Bali scandal
have refused to step down from their positions.

Calls for the pair to step down from their respected positions
to give credibility to their institutions have so far fallen on
deaf ears.

Just hours after he was convicted in the Rp 904 billion
(US$90.4 million) scandal and sentenced to three-years jail by
the Central Jakarta District Court on Wednesday, Sjahril vowed to
stay in office.

On Thursday, Sjahril argued that the market still supported
him and therefore he would not step down.

"Confidence from the public and market on both the central
bank and its staff is still maintained up till now," Sjahril told
reporters. "The market still has confidence in me.

"I have not heard comments from various parties accusing me of
corruption. This is more important for me," Sjahril added.

The rupiah ended the day at Rp 9,978 to the U.S. dollar on
Thursday, down from Rp 9,975 on Wednesday.

According to the central bank law, the Bank Indonesia governor
and members of its board of governors can be forced to resign if
he or she is proven by the court to have committed a crime.

But Sjahril immediately appealed. Because of the appeal,
according to legal experts, the court verdict has yet to take
legal effect.

The appeal process could take years to complete.

Sjahril was appointed as Bank Indonesia governor under the new
central bank law in 1999 for a five-year term.

Sjahril maintained that he would remain in the bank's top post
and would still be part of the central bank's decision-making
process until the end of his term.

Bank Indonesia's board of governors has pledged support to
Sjahril's to carry on with his duties as usual.

Sjahril also got the backing of Minister of Justice and Human
Rights Yusril Ihza Mahendra, who said that while waiting for the
appeal process, Sjahril could perform his duty.

Vice President Hamzah Haz also urged the people to respect the
legal process and let it work.

This government's backing and Sjahril's defiance to stay in
office may boost support for Akbar to retain his position as
House speaker.

Already, House deputy speaker A.M. Fatwa from the Reform
Faction on Thursday compared Akbar's case with Sjahril's, and
said whether Akbar should resign or not would depend to a great
extent on the House Speaker himself.

Although Akbar is detained as a suspect in the Rp 40 billion
graft case, House deputy speakers were almost in agreement that
his being absent would not disrupt House activities.

These House leaders always refer to House internal rules,
stipulating that the replacement of a House speaker could only be
pursued whenever he or she became permanently unavailable.

However, calls for Akbar and Sjahril to relinquish their posts
are based more on moral and ethical grounds rather than a legal
standing.

Many parties have expressed concern about the situation.

Noted lawyer Trimedya Panjaitan said on Friday that no public
institutions should be led by a suspect, let alone by a convicted
corruptor.

"The bank will lose its credibility as a result," Trimedya
said.

Senior economist Mohammad Sadli agreed and said that although
Sjahril's decision to stay would not affect the central bank's
operations, he personally believed that Sjahril should step down
from Bank Indonesia on moral grounds.

Trimedya went even further by urging the House Commission IX,
dealing with banking and finance, to not waste any time in
demanding Sjahril's resignation.

Commission IX chairman Benny Pasaribu agreed, but admitted
that House support for Sjahril was still quite strong.

"So it is rather difficult to ask him to resign if he's not
willing to," Benny said.

Nevertheless, Benny said: "It would be difficult for some
legislators to believe in Sjahril's words and accept his
policies."

The House commission IX selects the central bank governor and
senior deputy governor. Bank Indonesia also reports to the
commission on various policies.

A special team of the commission is currently amending the
central bank law. Bank Indonesia, an independent central bank, is
seen by the government as too powerful and lacking in
accountability.

Trimedya suggested that the team include a clause that a
convicted criminal or suspect must be barred from becoming a
member of the central bank's board of governors.

Otherwise corrupt people holding important positions, when
they are declared suspects or convicted of a crime, would copy
the way Sjahril or Akbar defended their positions.