Govt to pay another Rp 176.6b to Bank Global depositors

Govt to pay another Rp 176.6b to Bank Global depositors

The Jakarta Post, Jakarta

The Ministry of Finance has verified 3,997 savings accounts owned
by depositors of the now defunct Bank Global and will pay Rp
151.13 billion (US$15.9 million) in 2,196 of the accounts next
week under the government's deposit blanket guarantee scheme.

A total of Rp 25.26 billion in 66 non-savings accounts --
which includes interbank loans and safe deposit boxes -- will
also be covered by another Rp 615.58 billion in 1,888 savings and
non-savings accounts pending further verification.

But 14 savings accounts worth Rp 21.32 billion will be
scrapped from the list, as the Finance and Development
Comptroller (BPKP) and the ministry's blanket guarantee
implementation unit (UP3) found them to be linked with the owners
and management of Bank Global.

Another 27 non-savings accounts worth Rp 406.67 billion --
including Bank Global's sub-debt bonds and mutual funds -- will
not be covered as they are not included in the guarantee program.

"Depositors can receive payments for their guaranteed accounts
starting April 21 at appointed banks," Director General for
Financial Institutions Darmin Nasution said on Friday during the
announcement on the account verification results.

"Other depositors who have yet to submit their claims to the
payment banks are advised to do so by Nov. 22 at the latest, or
two months following the end of the government's blanket
guarantee program."

BPKP and UP3 had received data of 9,872 accounts worth Rp 1.25
trillion from Bank Global's management for verification.

In its two previous verifications, the ministry said it would
guarantee 2,398 accounts worth Rp 500.2 billion and as of April 7
had paid Rp 488.14 billion in 634 of the accounts through the
payment bank, Bank BNI.

Darmin explained the ministry still had to verify another
1,888 accounts as Bank Global's unscrupulous management had used
them for "overdrafting" -- numerous fund transfers from one
account to another ending at a fictitious account.

"These overdraft transactions have to be carefully traced and
clarified," he said. "The process is more difficult as the bank's
database had been somehow jammed. We have so far only succeeded
in retrieving data from February last year."

Bank Global depositors -- who attended the announcement and
whose accounts are yet to be verified -- questioned Darmin when
they would be compensated, several of them arguing they urgently
needed their funds.

"The results of the next verification will be announced in May
and we will try to cover all of the accounts," he said. "If
possible, we will also try make the payments quicker and easier."

Bank Indonesia officially closed Bank Global on Jan. 13, due
to failing capital and overt evidence of banking fraud. Last
year, the central bank also closed Bank Dagang Bali and Bank
Asiatic for similar reasons.