Ficorinvest directors changed with BLBI graft

Ficorinvest directors changed with BLBI graft

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Another corruption trial related to the alleged misappropriation
of the Bank Indonesia Liquidity Support Fund (BLBI) began Monday
at the South Jakarta District Court with two defendants from the
now-defunct Bank Ficorinvest standing trial.

Supari Dhirdjoprawiro, the former president director of the
bank, and S. Soemeri, the bank's director, are charged with
allegedly misusing Rp 319 billion (about US$37.1 million) of the
fund in 1998.

If found guilty, they could be sentenced to life imprisonment.

Supari, 65, and Soemeri, 59, were responsible for the illegal
BLBI disbursement by Bank Ficorinvest between January and March
of 1998, chief prosecutor R.W. Koloway said in the indictment.

"The defendants have allegedly abused their authority by
allowing the disbursement of the BLBI funds to speculate on
foreign exchange and to lend it to private clients," Koloway
said.

In fact, the central bank disbursed Rp 144.5 trillion in
liquidity support to 48 commercial banks in a bid to overcome
possible bankruptcy during the economic crisis in 1998 and 1999.

However, some 95 percent of the fund was used in a corrupt
manner for personal gain by the bank owners, according to the
Supreme Audit Agency (BPK).

In the past two years, the Attorney General's Office has
implicated a handful of bank owners and central bank officials in
the case, but few have actually been convicted or sentenced.

Among those who have been convicted were Bank Aspac's owner
Hendrawan Harjono and Bank Umum Servitia's David Nusa Wijaya who
were each given one-year jail terms.

David was ordered to repay Rp 1.27 trillion to the state,
while Hendrawan was ordered to pay only Rp 500 million in
compensation despite being found guilty of deliberately
embezzling Rp 583.4 billion of the BLBI fund.

The Central Jakarta District Court sentenced BHS Bank's
president Hendra Rahardja to life imprisonment, but he was tried
in absentia as he now lives in Australia. The extradition process
is still going on, but authorities are not confident that he will
serve time back here.