Court begins trial of BI governor
JAKARTA (JP): The Central Jakarta District Court commenced the trial of Bank Indonesia (Central Bank) governor Syahril Sabirin on Wednesday regarding his alleged involvement in the disbursement of Rp 904 billion (US$96.2 million) of Indonesian Bank Restructuring Agency (IBRA) funds to Bank Bali.
Chief prosecutor Y.W. Mere said Syahril was responsible for endorsing the disbursement of IBRA's money to Bank Bali.
He said Bank Indonesia and the Ministry of Finance had ruled that the loans to Bank Bali were not covered by the government's guarantee scheme.
"However, the defendant ordered one of his directors, Erman Munzir, between February 1999 and June 1999 to disburse the money to Bank Bali," Mere told the hearing, presided over by Judge Soebardi.
He also said that the funds were extended for the purpose of covering a loan that the now-defunct Bank BDNI had owed to Bank Bali, but was unable to repay at the time it was taken over by IBRA. It later became apparent that Rp 546 billion (US$58.8 million) of the money had been paid to factoring firm PT Era Giat Prima (EGP) as a "commission" for helping secure the repayment of loan installments.
"His action caused not only financial losses to the state, but also undermined public trust in the country's banking system," he said.
The prosecutor said Syahril had violated Article 1 of the 1971 law on corruption prohibiting the enrichment of oneself or others at the expense of the state. The Article carries a maximum punishment of a life prison sentence.
He also accused the defendant of having violated Article 55 of the Criminal Code for abusing authority and conspiring with others to commit a crime.
In response to the prosecutors' indictment, Judge Soebardi granted defendant Syahril permission to read out his personal statement contesting the indictment, despite the prosecutors' protests.
"I have never imagined being seated as a defendant, nor as a witness in this courtroom. Since my childhood I have always been careful in making decisions and taking steps so that I would not do anything wrong.
"But, this trial is a reality that I have to go through as a way to prove that I've done no wrong," Syahril said while reading out his personal statement.
He said the indictment was groundless as it had been prepared by the prosecutors upon speculative assumptions.
The defendant said Bank Indonesia issued the letter ordering the disbursement of the funds after receiving verification of Bank Bali's financial condition from IBRA. Furthermore, the verification, which was required to cover BDNI's loan as claimed by Bank Bali, would no longer be held by Bank Indonesia as BDNI has since been taken over by IBRA.
A team of seven lawyers, led by Muhammad Assegaf also read out their defense statement against the prosecutors' accusations.
Assegaf said the case was not a pure legal matter as it has arisen from President Abdurrahman Wahid's political motives to terminate Syahril as the central bank governor.
"Based on a recorded conversation between Syahril Sabirin and Attorney General Marzuki Darusman, it's obvious that the President had pressured the Attorney General to force Syahril to step down," he said.
"This trial is a consequence of Syahril's rejection of the President's wishes," Assegaf told reporters after the hearing.
The prosecutors have also named former Bank Bali director Rudy Ramli, former Minister of Investment and State Enterprises Development Tanri Abeng, businessmen Setya Novanto, Firman Soetjahja and Irvan Gunardwi, and former Supreme Advisory Council chairman A.A. Baramuli, as other suspects in the case.
Meanwhile, businessman Djoko S. Tjandra and former IBRA deputy chairman Pande Nasorahona Lubis were acquitted of all charges related to the Bank Bali scandal in August and November last year.
The case drew public attention when it was learned that EGP was owned by people closely connected with a small group in the Golkar Party who were responsible for the reelection of then president B.J. Habibie, who eventually lost his bid to remain in power in October 1999.
Syahril, who has been detained by the Attorney General's Office for over five months, was installed by then president Soeharto as Bank Indonesia's governor in February 1998, replacing Soedradjad Djiwandono, who is also being questioned at the Office for his alleged involvement in the Government Liquidity Support Fund (BLBI) case.
Syahril was reappointed by Habibie when Bank Indonesia became an independent central bank.
President Abdurrahman Wahid has been demanding the resignation of Syahril since he took over the country's leadership late last year. Syahril has continued to disregard Abdurrahman's demands.
Presiding Judge Soebardi adjourned the hearing until next Wednesday, when the court will hear the prosecutors' counter statement against the defendant's personal statement and the defense lawyers' statement. (01)