Ex-minister quizzed as witness in graft case
Ex-minister quizzed as witness in graft case
Abdul Khalik, The Jakarta Post, Jakarta
Former finance minister Bambang Subianto was questioned as a
witness in a Rp 520 billion (US$62 million) World Bank loans
scandal, Jakarta Police said on Tuesday.
Police corruption unit chief Adj. Sr. Comr. Anton Wahono said
Bambang was the director general in the Ministry of Finance who
disbursed the money to beleaguered state-owned enterprise PT
Rajawali Nusantara Indonesia (RNI) during Indonesia's economic
crisis of 1998.
"We needed to get information from (Bambang) about whether the
disbursement procedure was in accordance with the regulations
because he was the one who signed the documents approving the
funds disbursement," Anton said.
"According to our examination of the available data and his
statement, our preliminary conclusion is there was nothing wrong
with the disbursement procedure. However, we hope we can find new
leads from his detailed explanation," he said.
The scandal took place in 1998 when Indonesia was in the
middle of a severe economic crisis. The government established
the Investment Funds Account (RDI) using a loan from the World
Bank to support state-owned enterprises (SOEs).
PT RNI, one of the SOEs, with a core business in sugar supply,
submitted a proposal asking for Rp 580 billion. The proposal said
the funds would be used to provide cheap medicine and hospital
equipment nationwide. However, the company failed to pay back all
funds to the government.
The Supreme Audit Agency, which examined the case, found
irregularities in the disbursement process and reported it to the
police.
"PT RNI had received payments from hospitals to which it had
supplied the equipment and medicine. However, it has only
returned Rp 60 billion to the Ministry of Finance. Where is the
remaining Rp 520 billion?," Anton said.
After investigating, police believed the money had been used
by PT RNI to pay back its other loans as well as to build its
sugar factories, he said.
The police earlier had asked another former finance minister,
Mar'ie Muhammad, to submit relevant data regarding the scandal.
They plan to meet with Mar'ie sometime this week.
Anton had said on Monday that PT RNI former director police
named only as "Hussein S" was linked to the scandal.
Police have not yet charged anyone in relation to the case.