Hendra to come back, face truth

JAKARTA (JP): Businessman Hendra Rahardja, who is still abroad, will return to Indonesia and take responsibility for his two liquidated banks, Bank Harapan Sentosa (BHS) and Bank Guna International (BGI), his lawyer said yesterday.

Alamsyah Hanafiah denied allegations that his client had fled the country to avoid the consequences of the liquidation.

His two banks -- which have total assets worth an estimated Rp 4.7 trillion (US$1.4 billion) -- were among the 16 ailing private banks liquidated by the government in a bid to improve confidence in the country's economy.

"Hendra is not running away from the country and he's not taking the customers' money away either," Alamsyah told a press conference.

Alamsyah assured BHS and BGI customers and employees that the banks' commissioners and directors would be able to repay all their money and take responsibility for the effects of the liquidation.

"We estimate that the total funds from the future auction of the banks' assets, including the 218 buildings nationwide, will surpass the debts and liabilities to be paid by the two banks."

He refused to disclose the exact amount of the banks' assets or debts.

"That'll be announced by the government's team involved in the liquidation."

Hendra has a 38.40 percent stake in BHS, which had at least 3,800 employees.

The downfall of BHS was reportedly due to Hendra's aggressive investments, especially in the property sector where he constructed many buildings for bank offices and several housing estates in Tangerang and Bogor, West Java.

In 1996, when the bank's paid-up capital reached Rp 207.8 billion, reports said its credit for property projects was allegedly about Rp 279.3 billion, far in excess of its legal lending limit of only Rp 20.8 billion.

BHS's balance of payments, issued as of June 1997, showed that the bank's assets were Rp 4.3 trillion but, according to the central bank, they were valued at only Rp 3.37 trillion, the reports said.

Alamsyah admitted that Hendra was still living in another country.

"Hendra had gone abroad to undertake medical treatment for his illness long before the government announced its liquidation policy."

He said Hendra left the country about three months ago.

"But, he will return to the country as soon as the doctors allow him to."

Alamsyah refused to disclose the illness or the hospital and the country where Hendra is being treated.

"I'm sorry I can't give the name of the hospital. He is sick and needs some rest. We can't let reporters visit him and ask him questions about the banks."

A director of one of the banks told Hendra about the liquidation two days after the government's announcement, he said.

"The delay in informing Hendra was due to his illness. We were afraid that the bad news would just worsen his condition."

Local publications reported that Hendra, a brother of the notorious tycoon Eddy Tanzil who is wanted by police for corruption, had gone to Singapore for medical reasons and investigating police have tried to get him to return.

Alamsyah refuted allegations that National Police chief Gen. Dibyo Widodo had gone to Singapore to pick up Hendra.

"That's not right. The liquidation (of BHS and BGI) is not the police's business because there were no criminal acts involved."

He said Hendra was not in any way under police investigation.

"That's impossible. If he was being investigated, he would have been questioned in his lawyers presence," Alamsyah, who was appointed to represent Hendra on Nov. 1, said.

Alamsyah also denied allegations that some 123 BHS accounts owned by the Tanzil family have been seized by Bank Indonesia.

"That's also not true. We haven't heard about it, that's not clear." (cst)