Djoko S. Tjandra faces jail term of 18 months

Djoko S. Tjandra faces jail term of 18 months

JAKARTA (JP): A prosecutor demanded on Monday a jail term of
one year and six months for Djoko S. Tjandra, the primary
defendant in the Rp 546 billion (US$61.3 million) Bank Bali
scandal.

"The defendant has violated Paragraph 1a of Article 1 of the
1971 Corruption Law. He deserves a jail term of one year and six
months, and must pay the maximum fine of Rp 30 million,"
prosecutor Antashari Azhari said at a hearing at the South
Jakarta District Court, presided by judge Soedarto.

Article 1 of Law No. 3/1971 carries a maximum life sentence or
20-year jail term and a possible fine of Rp 30 million.

Djoko, the director of trading and investment firm PT Era Giat
Prima (EGP), was accused of being involved in the disbursement of
Bank Bali's interbank loans from closed bank BDNI, an action that
resulted in Rp 904 billion in losses to the state.

The state later managed to recoup the money.

The prosecutor, Antashari, refused to speak to reporters
before Monday's hearing.

After the hearing, he looked grim.

Antashari told the court that several factors helped reduce
his demand, which included the defendant's polite behavior during
court, not being in trouble with the law before and that the
state was able to recoup the funds.

"The factors going against the defendant are that he did not
express regret over the crime, and that he tarnished Indonesia's
image," Antashari said.

After the hearing, Djoko's lawyer O.C. Kaligis said the demand
was unfair.

"Everybody heard what expert witness Loebby Luqman said in
court, that receiving Rp 546 billion for assisting in recouping
interbank loans was not a big deal (for PT EGP)," Kaligis said.

"And yet the prosecutor made such a demand."

In other hearings, Djoko's testimonies often shocked the
courtroom. He told the court how he spent the Rp 546 billion
commission, and the following steps PT EGP took after receiving
the Rp 546 billion commission.

The January 1999 cessie contract between PT EGP and Bank Bali
was signed, Djoko once said, because PT EGP was sure that the
bank would be able to recoup the interbank loans from Bank BDNI.

"Why shouldn't EGP sign the contract? The government had
guaranteed those loans. PT EGP saw no problems in signing that
contract," Djoko said at a previous court hearing.

The scandal originated from the failure of three private banks
-- Bank BDNI, Bank Tiara and Bank Umum Nasional -- to repay a
total of Rp 904 billion to Bank Bali, a debt which remained until
the three were closed by the central bank in late 1998, due to
poor financial records.

Following the signing of the controversial January 1999 cessie
contract between the bank and PT EGP, Bank Bali then paid Rp 546
billion to PT EGP as commission to help recoup the funds.

PT EGP instead delegated its authority to Bank Bali officially
on March 29 last year to recoup the funds, despite receiving the
Rp 546 billion commission from the bank.

The process of delegation of authority to recoup the funds, as
often pointed out by O.C. Kaligis in court, is legal according to
the Indonesian Civil Code.

Of the Rp 546 billion commission paid to PT EGP, Djoko said he
used a little over Rp 434 billion, while Rp 112 billion was lent
to PT Unggaran Sari Garment of the Texmaco Group.

Djoko added that the entire Rp 546 billion was returned later
to the PT EGP account in Bank Bali. (ylt)