Habibie makes last effort

Habibie makes last effort

JAKARTA (JP): President B.J. Habibie staunchly defended his
achievements and magnanimously asked for forgiveness for all his
shortcomings in a last-ditch attempt on Sunday to convince the
People's Consultative Assembly (MPR) to accept his accountability
report.

"To the factions which have rejected my accountability report
and which think I have accomplished nothing... I shall put this
to God Almighty," Habibie told the Assembly in a speech
responding to the MPR's views of his accountability report, which
was delivered on Thursday.

Different from his accountability speech, which he began with
the story of his success in coping the country's economic crisis,
his Sunday address started with his defense of his policy on East
Timor.

The President appealed to the Assembly to scrap 1978 Decree
No. VI which ratified the integration of East Timor as the
country's 27th province and ratified the self-determination vote
result.

"As a great nation determined to advance democracy and human
rights, we have to accept and respect the result of the ballot,"
the President said, referring to the Aug. 30 vote for
independence by the East Timorese.

Fending off harsh criticism of his poor record in resolving
human rights violations during his 17-month tenure, the President
cited a limited number of security forces and the country's
complex problems as the main barriers to process the numerous
cases.

"We should remember that the simultaneous outbursts of
violence in various areas must also be judged from the context of
democratic euphoria within the society," Habibie argued.

He denied that the government was half-hearted in resolving
major human rights violations.

On the kidnapping of dozens of government critics before the
fall of then president Soeharto in May last year, he pointed out
that the Jakarta Military Tribunal had convicted 11 Army Special
Forces members, including a major, for disobeying their
superior's order.

On the Trisakti May 12 shooting incident last year, which
killed four students, the President said the military or police
were still hunting for the shooters.

"Ballistic tests are still underway and the case still cannot
be taken to court," the President said.

The shooting triggered nationwide riots which claimed about
1,200 lives and forced president Soeharto to hand over his power
to then vice president Habibie on May 21.

In proving his government's seriousness to end the tragedies
in Ambon, Maluku and Aceh, which have claimed thousands of lives,
Habibie merely cited military reports.

He said the military tribunal in Banda Aceh had convicted five
soldiers for violating human rights and more defendants would be
tried next month.

"Insya Allah (God willing), next month more cases will be
brought to court," Habibie said.

The President defended the acting attorney general's decision
to stop corruption investigations on Soeharto, saying: "The case
is not definitely halted. If there is new evidence, it can be
reopened."

Speaking to journalists after the President's speech, Golkar
chairman Akbar Tandjung still hoped that the 11 factions in the
Assembly would accept Habibie's accountability speech.

"The President has given his response to factions' different
views on his accountability speech. We still hope the factions
that have decided to reject his accountability will change their
mind after hearing Habibie's response today," he said.

But, presidential candidate Megawati Soekarnoputri of the
Indonesian Democratic Party of Struggle reaffirmed on Sunday her
party's rejection of Habibie's speech.

"I personally believe that our faction will still reject
Habibie's accountability speech," she said.

Habibie defended once again his economic programs, including
the much-criticized handling of a high profile Bank Bali scandal
which allegedly involved certain members of his Cabinet and inner
circle.

Habibie reiterated reasons why his government had declined to
disclose the result of the PricewaterhouseCoopers (PwC)
investigation of the Bank Bali scandal.

He pointed out that since the PwC audit report contains
information on various personal bank accounts, disclosing the
report would violate the country's banking secrecy code.

"A violation of the banking secrecy code risks a severe
penalty. That's why the BPK (Supreme Audit Agency) is currently
asking for a legal opinion from the Supreme Court for the
possibility to disclose the full PwC report," he said.

The Bank Bali scandal centers around the transfer of US$80
million from the bank to a private firm owned by businessmen
linked to Habibie's inner circle.

Disclosing the PwC report would reveal the influential people
involved in the scandal, which would seriously undermine
Habibie's effort to run for president.

Economists said that the Bank Bali scandal cost the country
dearly, including a delay of the banking restructuring program
and the suspension of crucial foreign loans primarily from the
International Monetary Fund (IMF) and the World Bank.

Experts also said that the scandal has destroyed confidence in
the economy and thwarted overall economic reforms.

But Habibie dismissed such concerns, saying that the loan
delay was not an indication that the IMF and the World Bank had
lost confidence on the government and economic reform programs.

"The fact that the IMF sent its technical team here proves
that it is still committed toward the success of our economic
recovery programs," he said.

The IMF has said its technical team to Jakarta met primarily
with independent economists and party leaders to review the
country's various economic programs.

He said that the stable rupiah helped in curbing inflation
which, in turn, allowed a drop in interest rates.

But experts said that the rather positive indicators did not
necessarily mean that the economy was already on track toward
recovery.

Habibie admitted that the estimated cost of the country's bank
restructuring program was Rp 569.2 trillion.

Habibie had said in his accountability speech that the overall
cost estimate was Rp 350 trillion, which drew sharp criticism
from analysts.

Economists criticized Habibie's accountability report for
containing inaccurate figures on such important matters as
banking.

Habibie reportedly angrily berated his advisers and economic
team for the humiliating mistake.

Defending his record in dealing with corruption, collusion and
nepotism in state enterprises and agencies, Habibie said that his
government had started taking firm action at the state oil and
gas firm Pertamina, state electricity firm PLN, and state
logistic agency Bulog.

He pointed out that PwC and Arthur Andersen had completed
audits on the state enterprises. (rei/rms/jsk/byg/05/prb)