Habibie asks public to put bank scandal in 'proportion'

JAKARTA (JP): Embattled President B.J. Habibie implored the public on Thursday to put the Bank Bali scandal in "proportion".

"I appeal to all parties to put the problem in proportion. Don't let our attention to this case become disproportionate (through) too much politics," he said in a speech at the opening ceremony of the Cooperatives Council congress.

He said for that reason he ordered the National Police and the Attorney General's Office to thoroughly investigate the scandal and take legal action it they deemed it necessary.

"Any wrongdoers must be prosecuted according to the law," Habibie said.

He appealed to the public to let law enforcers resolve the matter through legal means because "we have to respect the law".

Fallout from the scandal is believed to have undermined Habibie's chances of winning the November presidential election.

The scandal centers on the legally dubious transfer of Rp 546 billion from Bank Bali to private firm PT Era Giat Prima (EGP) as a commission for its help in recouping Rp 904 billion in interbank loans made to closed banks.

Use of EGP's services was unnecessary because the loans were guaranteed by the Indonesian Bank Restructuring Agency (IBRA).

EGP is owned by two businessmen, one of whom is a Golkar Party official. Some have alleged the funds were earmarked to bankroll Habibie's presidential campaign.

Pressure

Golkar is facing intense pressure to drop its nomination of Habibie due to the scandal and the decision of the East Timorese to choose independence over a Habibie-proposed autonomy package.

Habibie has blamed his talkative chief adviser Arnold Baramuli for developments in the scandal. Baramuli is the head of the Supreme Advisory Council (DPA) and a senior Golkar politician with 20 years of experience as a legislator.

Some reports have alleged Baramuli masterminded the fund transfer.

Habibie said recently that it was Baramuli who handed him a letter purportedly from former Bank Bali president Rudy Ramli. The letter denied the existence of a journal providing a chronological record of successive meetings between Rudy and several ministers, prominent businessmen and senior state officials including Baramuli, before the payment of the commission.

Habibie made the statement after Rudy confirmed to legislators the existence of the journal and denied authoring the letter. However, Rudy did not verify the contents of the journal, which was circulated to the media.

Finance minister Bambang Subianto and chairman of IBRA Glenn S. Yusuf have also indicated Baramuli's involvement.

Baramuli is scheduled to meet the House of Representatives special investigation team on Friday, but he abruptly took a 10- day leave from work on Thursday. It is unclear whether he will appear before legislators.

Many are increasingly concerned about the slow progress in the resolution scandal amid allegations of a cover-up including legislators.

Secretary-general of the National Mandate Party (PAN) Faisal Basri doubted whether the police could thoroughly investigate the case through to its resolution.

"The police have not been proactive. They're only proactive (in investigating) people who are against Habibie," he told reporters on the sidelines of a hearing with legislators.

The have named nine suspects, including the former management team of Bank Bali, EGP owners and deputy chairmen of IBRA Pande Lubis and Farid Harianto.

Faisal also criticized legislators for not being "creative" in efforts to obtain the complete version of the PricewaterhouseCoopers (PwC) audit on the Bank Bali scandal.

BPK

The Supreme Audit Agency (BPK) has said that the complete version of the PwC report would only be handed over to the police and to the attorney general even though the House ordered BPK to hire the international auditor.

BPK chief Satrio B. Yudono cited Law No. 5/1973 on the agency, which stipulates that any of its audit linked to a crime must only be submitted to the police or the attorney general.

Faisal argued that the report must be handed over to the House in the interest of the public.

He said the Constitution was above the BPK law.

"I believe there's a cover-up," Faisal said.

In a related development, State Minister of the Empowerment of State Enterprises Tanri Abeng declined on Thursday to answer questions from legislators concerning the scandal.

"Bank Bali has no relation at all to my responsibility as the state minister of the empowerment of state enterprises," he told a hearing on the privatization program.

He added that he was scheduled to appear before the House investigation team on Friday.

Tanri's name is listed in the journal. (rei/prb)