Court acquits ex-banker Onko in BLBI graft case

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Inconsistencies in the course of justice in the Bank Indonesia Liquidity Support (BLBI) case was evident Friday, as the Central Jakarta District Court acquitted the former deputy commissioner of the now-defunct Bank Umum Nasional (BUN) from all charges, while the former president director received 10 years in jail for misusing Rp 6.7 trillion (US$745 million) of the fund.

The court ruled that defendant Kaharudin Ongko, 65, was not guilty of graft or of amassing wealth as charged earlier by prosecutors.

"As a commissioner, the defendant was not responsible for any of the activities taken by the bank's director," presiding judge Amiruddin told the hearing, and ordered the rehabilitation of Ongko's reputation.

Defendant Leonard Tanubrata was not as fortunate as Ongko, as the judges declared him guilty of misusing the BLBI funds during the November 1997 to April 1999 period when he served as the bank's president director.

Prosecutor Y.N. Eddy said he would file an appeal against the court's decision to acquit Ongko.

He had earlier demanded a sentence of 16 years for Ongko and 14 years for Tanubrata, and for the defendants to repay the state the Rp 6.7 trillion.

Although he looked a little shocked, Tanubrata, who remained free pending the final legal settlement, must be relieved as the judges did not order him to repay the state losses.

"The shareholders of BUN have settled their debts with the government, so the defendant does not have to repay the state losses," Judge Amiruddin said.

One of BUN's shareholders, Muhammad "Bob" Hassan, signed the Master of Settlement and Acquisition Agreement (MSAA) on Nov. 6, 1997, while Ongko, who is also a shareholder, signed the Master of Refinancing and Notes Issuance Agreements (MRNIA) on Dec. 18, 1997, with the Indonesian Bank Restructuring Agency (IBRA), as was revealed by the court.

Bob, a timber tycoon, is now behind bars at Nusakambangan Island off the coast of Central Java after he was sentenced to six years in jail for manipulating US$75 million from a forestry fund.

The judges had also considered that the government may give the BUN shareholders "release and discharge" statuses for signing the MSAA and MRNIA.

The government, on recommendations from IBRA and the Financial Sector Policy Committee (FSPC), which groups senior economic ministers, has agreed to exempt former bank owners deemed cooperative in settling their debts to the state from criminal charges, by offering them the release and discharge status.

Many have raised their objections to the policy, saying that it would dash public hopes for justice.

According to the Supreme Audit Agency (BPK), many bank owners had violated a total of Rp 144.5 trillion (US$16.2 billion) in BLBI funds provided by the government.

Courts here have delivered inconsistent sentences for the defendants of BLBI cases. Armed with a variety of reasons, judges had acquitted several defendants from all charges, while in other cases, they presented light sentences of only several months to a few years in jail.

This does not mean that the court has never handed a harsh sentence. The Central Jakarta Court sentenced former banker Hendra Rahardja of the now-defunct Bank BHS to life in prison and two other executives of the same bank to 20 years in jail. Unfortunately, however, they were all tried in absentia.

With such contradictory verdicts, it is understandable if the lengthy and controversial trials bear no significant consequence for the poor state budget, as the court did not order most defendants to repay the abused funds to the state.

Out of 17 cases, the courts have only ordered three defendants to pay a maximum fine of Rp 500 million each, instead of ordering them to repay their debts worth trillions of rupiah.

David Nusa Wijaya of the now-defunct Bank Servitia was ordered to repay Rp 1.27 trillion, but his present whereabouts is unknown as he fled when his case was being heard by the Jakarta High Court.

The courts here have never ordered the immediate incarceration of convicted criminals directly after the verdicts have been read and sentences handed down.