Executives of private banks to be questioned over fraud

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)