Court acquits Bank Modern president of corruption

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

The Central Jakarta District Court dropped a bombshell on Friday in the legal battle against abusers of Bank Indonesia liquidity support (BLBI) funds by acquitting former president commissioner of the now-defunct Bank Modern, Samadikun Hartono, of corruption.

According to the verdict, Bank Modern had been proven guilty of misusing Rp 11.9 billion in BLBI funds by purchasing promissory notes issued by state electricity company PT PLN.

However, the panel of judges said that Samadikun was not responsible for the violation because the funds were disbursed by the bank's board of directors.

"As a commissioner, the defendant was responsible for permitting the bank to disburse a loan of Rp 10 billion or more, but the defendant did not have to supervise his directors every day," presiding judge Rusdy As'ad told the court, which was packed with reporters and Samadikun's supporters.

The panel of judges, including Judge Panusunan Harahap and Judge Dwiarso Budi S, defended Samadikun by saying that the violation occurred prior to the disbursement of BLBI funds.

The judges also said that Samadikun had signed an agreement with the government to settle Bank Modern's BLBI loan.

"The defendant, consequently, must be acquitted from all charges in the name of justice," Judge Rusdy said.

In the verdict, the judges said, "We realized that the public demands law enforcement. However, an independent judiciary does not accept intervention. The judges will declare guilty a guilty party, and declare not guilty an innocent party, with all its consequences."

Chief prosecutor YW Mere earlier recommended the court sentence Samadikun to one year in jail as Bank Modern's president commissioner for permitting the disbursement of Rp 11.9 billion in BLBI funds.

Mere earlier indicted Samadikun for allegedly misusing Rp 1.7 trillion in BLBI funds, but during the hearing, which started in August last year, he said the bank had misused only Rp 169 billion, not Rp 1.7 trillion as originally alleged. The figure later changed to Rp 11.9 billion.

Mere also said that Bank Modern had disbursed the money in several installments to several companies within the Modern Group, which was owned by Samadikun.

However, the judges brushed aside the accusation, saying the disbursement was legal.

Wearing a brown batik shirt and black trousers, Samadikun looked calm but refused to comment as usual.

The verdict was read out in turns by Judge Rusdy and Judge Panusunan, because Judge Dwiarso held a handkerchief over his mouth throughout the hearing.

When asked whether he voted for or against the acquittal, Dwiarso said: "I'm sick. Ask the presiding judge," Judge Dwiarso told reporters.

Meanwhile, Rusdy avoided answering the same question.

"I hurt my hands, I am tired," said Rusdy, who later locked himself in his chambers. Rusdy last year acquitted a Supreme Court justice of accepting a Rp 50 million bribe, and this year threw out of court the bank fraud case against businessman Hasjim Djojohadikusumo due to insufficient evidence.

Prosecutor Mere has yet to decide whether to appeal against the verdict.

"We're still thinking about it," he told reporters after the hearing.

The government provided the BLBI funds from 1998 to 2000 to assist 48 commercial banks deal with massive bank runs during the monetary crisis. Ironically, some Rp 137 trillion (US$13.3 billion) of the funds was misused during 1998 and 1999.

Friday's decision was the third loss for the state in its legal battle against alleged BLBI abusers. The Attorney General's Office has sent more than a dozen cases to court in the hope that BLBI abusers would be punished and the state could retrieve the funds.

The government lost its first legal battle last year when the South Jakarta District Court acquitted Hendrawan Haryono, former deputy director of now-defunct Bank Aspac, and the second when this year David Nusa Wijaya of Bank Servitia, failed to serve his sentence as he is still at large.