Former BI governor to be prosecuted

Former BI governor to be prosecuted

JAKARTA: A former governor of the central bank will be
prosecuted soon in connection with the alleged misuse of Bank
Indonesia liquidity support (BLBI) funds from 1997 through 1999,
an official said.

Attorney General's Office spokesman Antasari Azhar announced
on Friday that the office had completed the case files of J.
Soedradjad Djiwandono and would hand over them to the Jakarta
Prosecutor's Office sometime next month.

He said Soedradjad was responsible for the disbursement of Rp
9 trillion of BLBI funds to ineligible private banks that
obtained the bailout money when it was being doled out from 1997
through 1999.

Recently three former BI officials have been convicted and
sentenced to between two and a half and three years in prison for
the same case. They remain free pending appeal.

According to the Supreme Audit Agency (BPK), the government
lost Rp 144.5 billion as some 95 percent of the BLBI funds were
misused by various bank owners. -- JP