Court acquits Bank Modern president of corruption

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.