Frustration escalates as Bank Bali scandal drags on
Frustration escalates as Bank Bali scandal drags on
By Reiner S
JAKARTA (JP): The villains in the Bank Bali saga are fighting
back with a vengeance, armed with the considerable might at their
disposal.
And so far they appear to be winning.
Encouraging signs earlier in the month from the House of
Representatives that evidence against politically influential
figures implicated in the scandal would be revealed soon were
dashed with developments last week.
Legislators suddenly appeared impotent and incapable in
pushing through the investigation to its conclusion. The findings
of an expensive audit into a scandal which began with the payment
of a dubious commission were given short shrift.
Some legislators are not hiding their frustration.
"I have a feeling, a political one, that this commission will
never succeed (in uncovering the scandal)," said legislator A.
Muchlis over the weekend during a hearing between House
Commission VIII concerning banking and finance with international
auditor PricewaterhouseCoopers (PwC), which conducted the audit.
House special investigation team deputy Erwin Sjahrir told of
feeling let down after a key witness denied the veracity of a
major section of a journal purportedly listing meetings of the
bank's management with influential figures from business and
politics.
"I'm now confused," he said after the closed-door questioning
of former Bank Bali director Firman Soetjahja.
Former Bank Bali president Rudy Ramli acknowledged the
existence of the journal to Commission VIII on Sept. 10. The
journal, widely circulated to the media, lists Firman meeting
with the head of the Supreme Advisory Council (DPA) Arnold
Baramuli and other influential figures in February.
Rudy's startling testimony fanned hopes it would mark the
turning point in revealing the suspected role of Baramuli and
other powerful figures.
Finance minister Bambang Subianto and chairman of the
Indonesian Bank Restructuring Agency (IBRA) Glenn S. Yusuf also
indicated to the same commission on Sept. 13 that Baramuli's was
involved.
Baramuli is President B.J. Habibie's chief adviser.
Both Bambang and Glenn were later summoned to Habibie's
private residence. Rumor has it that Habibie was set to fire the
two, based on Baramuli's advice, but relented after the
International Monetary Fund (IMF) intervened.
Baramuli repeated on Friday that he was not involved in the
scandal and cited Firman's testimony as proof.
He also took the opportunity to brand Rudy a liar and a drug
addict.
"It's clear that Bambang and Glenn should be responsible for
the Bank Bali problem," he told more than 100 journalists and
observers at a news conference after the questioning.
He claimed the scandal was due to the payment of government
guaranteed interbank loans to the bank, alleging that the PwC
audit revealed wrongdoing committed by Bank Indonesia (BI) and
IBRA, a unit of the finance ministry.
"In our opinion, BI and IBRA did not fully comply with the
existing government guarantee scheme rules and regulations in
processing Bank Bali's claim," PwC said in its summary report.
The police announced on Thursday that IBRA's deputy chairman
Farid Harianto was listed as a suspect. They also named two BI
senior officials, Herman Munzir and Demi Demas, as suspects on
Friday.
Legislators were dismayed that PwC's expensive audit was
ultimately of no help because the complete report could not be
provided to them based on government regulations.
"It's useless because the results can't be given to us," said
Muchlis.
Legislators received the summary of the PwC report but the
flow of funds report -- vital in revealing those involved in the
scandal -- was not included.
According to the law covering the BPK, the full PwC audit
report can only be provided to the police and the attorney
general. PwC excluded the section on the flow of funds due to
fears of violating the bank secrecy rules.
Legal experts argued that the commission should not have
summoned PwC in a vain effort to obtain the full report, but
instead requested it from the police.
"I don't understand why the commission should have wasted its
time by summoning PwC. They should have been more strategic and
creative," said one legal consultant.
The scandal centers on the transfer of a Rp 546 billion
commission from the bank to PT Era Giat Prima (EGP) as payment
for its help in recouping about Rp 904 billion in loans to closed
banks.
Bank Bali did not need the help of a third party because the
claims were guaranteed by the government.
There have been allegations that EGP, which was headed by a
Golkar Party executive, was a front for Habibie's inner circle to
raise funds to bankroll his bid for the presidency in November.
PwC acknowledged that its fund tracing activities were
incomplete due to time limitations and the restrictions imposed
by the central bank on its auditing of certain bank accounts.
It recommended that the police continue to investigate the
tracing of funds.
Many doubt that the police would be able to do the job swiftly
and satisfactorily.
"The police have not been proactive. They're only proactive
against the enemies of Habibie," said Faisal Basri, secretary
general of the National Mandate Party.
Police have named former members of Bank Bali's management,
owners of EGP, IBRA officials and BI officials on the list of 11
suspects.
Several opposition politicians have warned of imminent mass
demonstrations due to the slow progress in the resolution of the
scandal.
Habibie has appealed to the public to be "proportional"
concerning the scandal, arguing that it was up to law enforcement
officials, particularly the police and the attorney general, to
resolve the matter.
But his plaintive request may be disregarded if the wide-
ranging implications of the scandal begin to touch the lives of
ordinary Indonesians, particularly the poor. The IMF and the
World Bank are threatening to withold further aid disbursements
pending satisfactory resolution of the scandal.