Hashim's lawyers file counterclaim against IBRA

JAKARTA (JP): Lawyers of businessman Hashim S. Djojohadikusumo slapped a counterclaim on the Indonesian Bank Restructuring Agency (IBRA) on Monday over the agency's Rp 596 billion (US$68 million) lawsuit against defunct Bank Istismarat Indonesia.

The bank was owned by Hashim and his father, Sumitro.

The counterclaim was handed over to the panel of judges in the initial hearing of the IBRA lawsuit at the Central Jakarta District Court, presided over by judge Subardi.

In the counterclaim, chief defense lawyer Hotman Paris Hutapea said the lawsuit brought against 14 parties -- including Hashim, Sumitro and a company in which Hashim is chief director -- was unclear on some factors, including whether the plaintiff was the country, the government or IBRA.

"IBRA is a different legal institution from the government and the country," Hotman said in the counterclaim.

The IBRA lawsuit, filed in August, centers around the Rp 596 billion that Bank Istismarat received in the form of government liquidity support in 1998 when the economic crisis worsened.

The bank, along with Bank Pelita -- both owned by Hashim -- is among 10 banks shut down by the government in 1998 in its attempt to restructure the country's ailing banking sector.

After issuing a number of public warnings, IBRA threatened last year to take legal action if Hashim failed to settle the Rp 3.2 trillion debts of both Bank Istismarat and Bank Pelita.

In the IBRA lawsuit against Bank Istismarat, chief prosecutor, Yoseph Suardi Sabda, accused the bank's owners of breaching lending provisions by channeling most of their money to other businesses.

In turn, Hotman Paris said on Monday that filing a lawsuit against PT Bumisuri Adilestari (BA) -- which was a shareholder of Bank Istismarat and in which Hashim is chief director -- was baseless, since the authority that the shareholders had over the bank had been transferred to IBRA, immediately after IBRA took over the bank.

"Litigating PT BA is against Article 40 of Government Regulation No. 17/1999 on IBRA, which stipulates that the authority of a shareholder is transferred to IBRA once IBRA takes over the bank," Hotman said.

He added that his client was shocked upon reading IBRA's lawsuit which had failed to provide substantiation for IBRA's figure of Rp 596 billion.

"We demand IBRA give evidence in the form of calculations amounting to Rp 596 billion. We also demand IBRA's explanation for the takeover of Bank Istismarat's total assets, worth nearly Rp 1.4 trillion, and on what have the assets been used for," Hotman said.

"The accountability must be given to prove where all the assets have gone. Without it, the lawsuit is premature."

IBRA has named 14 defendants in the lawsuit. They are Bank Istismarat Indonesia; PT BA; Sumitro Djojohadikusumo; Hashim S. Djojohadikusumo; the bank's commissioners -- Okie Rehardi Lukita, Adi Widjaja, Mawardi Yunus, Siswanto Sudomo and Agus Anwar; the bank's chief director, Syafril Nur; the bank's directors -- Siswoko, Asrul Rizany, Didik Widjijanto and Toos Djuniarli.

The lawsuit states that instead of paying the debts, the bank's owners had extended credits to other businesses and paid extravagant sums to the bank's directors for expenses amounting to some Rp 127 billion.

The prosecutors stated that as personal and corporate guarantors of the bank, Hashim, Sumitro and PT BA were obligated to pay off the debts of Bank Istismarat, and if they did not, legal action needed to be taken against them.

"They must be made to pay with interest. Should they fail to do so, they should be put in jail," the IBRA petition stated.

Some Rp 140 trillion in liquidity support was extended by the government to banks in 1998 in a bid to prevent the complete collapse of the banking system.

IBRA controls more than Rp 230 trillion in bad loans transferred by closed down and recapitalized banks. The agency, however, is finding it difficult to sway the debtors, mostly influential businessmen, to restructure the loans. (ylt)