EGP-Bank Bali cessie contract lawful: Expert

EGP-Bank Bali cessie contract lawful: Expert

JAKARTA (JP): A civil law expert said on Monday that a January
1999 cessie contract between factoring firm PT Era Giat Prima
(EGP) and Bank Bali was lawful but had been wrongly
implemented.

"I am not arguing the fact that the cessie contract is legal.
The problem is with PT EGP, which did not accomplish two main
points stated in the contract," Rosa Agustina Pangaribuan of the
University of Indonesia's School of Law said in a hearing at the
South Jakarta District Court, presided over by judge Soedarto.

The district court heard on Monday the testimonies of Rosa,
banking expert of the University of Indonesia Djoeanda
Kartawinata and driver of tycoon Marimutu Manimaren, Soetarno.
The three were invited by chief prosecutor Antasari Azhar to
testify in the trial of main defendant in the high profile Bank
Bali scandal, Djoko S. Tjandra, also an EGP executive.

"Bank Bali paid PT EGP Rp 546 billion in commission for
assisting the bank in recouping Rp 904 billion in interbank loans
guaranteed by the government," Rosa said.

"As stated in the contract, PT EGP should have handed over
saleable documents as collateral to Bank Bali, worth 60 percent
of the Rp 546 billion.

"This should have been done within the stated deadline, which
to date, PT EGP has not done."

Former Bank Bali president Rudy Ramli testified in a previous
hearing that Djoko and another EGP executive, Setya Novanto, had
offered assistance through PT EGP to recoup Bank Bali's funds,
which had been borrowed by liquidated private banks, including
Bank Dagang Nasional Indonesia (BDNI).

Djoko and Setya, who was also treasurer of the Golkar Party,
were then given Rp 546 billion as commission for assisting Bank
Bali in recovering the funds.

"Since PT EGP was given Rp 546 billion as commission for
assisting Bank Bali in recovering the funds, logically, it was
its duty to actively help recover the funds, including that of
BDNI," Rosa said.

"Instead, the company redelegated the authority to Bank Bali
to recover the borrowed funds from BDNI."

Rosa said that since Bank Bali had never made any formal
statement against the irregularities and the cessie contract was
never terminated, "the contract is, by all means, legal."

Quoting Articles 1320, 1338 and 1340 of the Civil Code, she
added that the handover of the Rp 546 billion commission and PT
EGP's decision to redelegate the authority to Bank Bali to recoup
the funds was also legal.

Separately, witness Soetarno, who has worked for Manimaren
since 1995, told the district court that he had driven Manimaren
to the residence of former state minister of the empowerment of
state enterprises Tanri Abeng in Simprug in South Jakarta, some
time last year.

"I don't remember the date, but I know it was last year. At
that meeting, my boss, Pak Djoko S. Tjandra, A.A. Baramuli, Setya
Novanto and Rudy Ramli were among those who were present,"
Soetarno said.

"I don't know what they met for, but they did."

Judge Soedarto adjourned the hearing until Thursday, when the
court will hear testimonies of other witnesses.(ylt)