Glenn: Bambang ordered the Bank Bali claims

JAKARTA (JP): Former chairman of the Indonesian Bank Restructuring Agency (IBRA) Glenn A. Yusuf testified on Wednesday that the repayment of Bank Bali's interbank claims was processed on the order of former minister of finance Bambang Subianto.

"My deputy, Pak Pande, requested me to let him process Bank Bali's claims as he had been ordered to do so by the (former) minister of finance (Bambang Subianto)," Glenn said referring to a former deputy chairman of IBRA, Pande Nasorahona Lubis.

"The (former) minister considered that the repayment of Bank Bali's claims was part of the government's program for restoring the banking sector," he told the Central Jakarta District Court, which is trying Bank Indonesia Governor Sjahril Sabirin.

Sabirin is standing trial for his alleged role in the illegal disbursement of the money to Bank Bali in 1999.

Glenn said, however, that he did not know what happened afterwards as he then left for abroad and delegated his routine duties to his deputy, Farid Haryanto.

Farid later asked Pande, who was also the deputy for bank liabilities, to process the claims, according to the witness.

When asked whether he knew that Bank Indonesia had refused to process the claims, Glenn said: "I found out later."

The Bank Bali corruption scandal centers on the repayment of Rp 904 billion in loans extended by Bank Bali to three defunct private banks -- Bank BDNI, Bank Tiara, and Bank Umum Nasional. The government took over the third party liabilities of closed banks at the time.

Glenn's testimony contradicted the earlier testimony of Bambang Subianto, who claimed that he had never approved the payment of Bank Bali's claims.

The court also heard testimony from the former chairman of the Supreme Advisory Council, A.A. Baramuli, and former state minister for the empowerment of state enterprises Tanri Abeng. The two are also members of the Golkar Party.

Tanri has also been named as a suspect in the scandal for his alleged role in paying out the claims.

Former President of Bank Bali Rudy Ramli has claimed that both Baramuli and Tanri held a meeting at Hotel Mulia on Feb. 11, along with Djoko Tjandra and Setya Novanto of PT Era Giat Prima (EGP), Marimutu Manimaren from the Golkar Party, and Rudy himself to discuss Bank Bali's claims. PT EGP proposed the processing of Bank Bali's claims, but sought a commission worth Rp 546 billion.

Many believe that the money was donated to the Golkar party to help it win the 1999 general election.

Both Baramuli and Tanri said the meeting never took place. "It's just a political maneuver to besmirch my good name," Baramuli told the court. (tso)