Court baffled by testimony of Bapindo bosses

Court baffled by testimony of Bapindo bosses

JAKARTA (JP): It's Bambang Kuntjoro's and Sjahrizal's words
against Adi Sugondho.

The existence of a crucial board of directors meeting at the
government-owned Bank Pembangunan Indonesia (Bapindo) on the
afternoon of June 2, 1992, has become a mystery as one director
denied ever attending it while the other two insisted that all
three were present.

Sjahrizal and Bambang are both on trial as are two other
former Bapindo directors -- Subekti Ismaun and Towil Heryoto --
for allowing the Rp 1.3 trillion ($620 million) debacle at the
bank in their dealing with businessman Eddy Tansil. Adi Sugondho,
a fifth member of the board of directors, is not on trial.

Sjahrizal and Adi were confronted yesterday during the trial
of Towil in the South Jakarta District Court about the existence
of the afternoon meeting on June 2.

Both men yesterday insisted that they were correct and in the
absence of any document on the minutes of that meeting, it boils
down to Sjahrizal's words against Adi's. Bambang in early
testimony has also insisted that the meeting did take place.

The existence of this meeting, more than anything else, is
crucial in determining the extend of the influence then minister
of finance J.B. Sumarlin in the bank's decision making process.

According to Sjahrizal and Bambang, the afternoon meeting
decided to overruled the decision the directors made earlier that
morning to cut the bank's losses in its dealing with Tansil. The
bank then had already loaned $208 million to Tansil.

Sjahrizal contended that immediately after that meeting, he
was summoned by Sumarlin to the Ministry of Finance office. The
minister, he alleged, ordered the directors to reverse its ruling
and to continue lending Tansil.

Sjahrizal said that later that same afternoon, he, Adi and
Bambang convened and agreed to carry out the minister's order.
Towil was out of the country and Subekti was on holiday but the
presence of three out of five directors was all that was needed
to pass a decision.

Lunch

Two Bapindo staffers have testified in court that the meeting
did take place and that Adi was present.

Adi said he was not informed about Sjahrizal's meeting with
Sumarlin. "As long as I can remember, Sjahrizal never left the
room except for lunch at 12 p.m. and joined the meeting, which
continued until 3 p.m.," Adi said.

Sjahrizal has another tough obstacle to prove his words.

Sumarlin has denied ever giving the order or meeting Sjahrizal
on June 2, pointing out that he was out of town at the time.

And he says he can prove it.

Sumarlin, now chairman of the Supreme Audit Board, is listed
in Towil's case as no. 40 witness.

Towil's lawyers say they will insist that Sumarlin be called
to testify and that the court does not simply rely on his written
response to questions from the Attorney General's office. (02)