Executives of private banks to be questioned over fraud

JAKARTA (JP): The police said yesterday they would investigate executives of at least six private banks who have intentionally used improper procedures to receive loans from Bank Indonesia (BI).

City Police spokesman Lt. Col. E. Aritonang told reporters that representatives of the banks would be questioned soon to ascertain whether they had received credit from the central bank which was corroborated by the three former directors who have been formally charged with corruption.

Aritonang, however, refused to disclose the names of the private banks.

Following a police probe into five private banks, the investigation of at least six banks is to trace whether their executives "might also have enjoyed loans from BI which were granted without the governor's consent," he said.

According to Aritonang, the three former directors once held strategic positions at the central bank which gave them the authorization to confirm loans to be granted to private banks.

Three months ago the police detained 35 former executives, including employees of Bank Perniagaan, Bank Asta Prima, Bank Asta, Bank Dwipa and Bank Citra, for their alleged involvement in receiving improper loans granted by the central bank.

Probes into the five banks have led the police to further investigate the three former BI directors -- Hendrobudiyanto, former director of private foreign exchange supervision; Paul Soetopo Tjokronegoro, former director of market operations; and Heru Soepraptomo, former director of legal affairs.

Police said the three were being investigated to determine whether they had intentionally abused their positions to approve the loans which were not processed properly.

In a related development yesterday, another police source said that the city police summoned executives of at least six private banks late last week.

Following the summoning of the six banks' executives, 17 witnesses have been questioned by the police in connection with the corruption case allegedly committed by the three former BI directors, said the officer, who refused to be named.

"The number includes five experts on banking, economics and law," he said.

The source, however, refused to either name the experts or the banks.

"We'll continue our investigation both into the witnesses and the three former directors," was all he said.

He said however the three former directors were not questioned yesterday. (cst)