House agrees to investigate BLBI fund scam

House agrees to investigate BLBI fund scam

JAKARTA (JP): The House of Representatives (DPR) at a plenary
session on Monday agreed unanimously to investigate the Rp 144
trillion (US$13 billion) Bank Indonesia Liquidity Support (BLBI)
scandal.

The investigation was proposed by the Indonesian Democratic
Party of Struggle (PDI Perjuangan) and National Awakening Party
(PKB) factions.

"The House has principally agreed to set up a special
committee to follow up on the working committee's findings in its
investigation into the BLBI funds," said House Deputy Speaker
Tosari Widjaja, who presided over the plenary session.

He, however, said that the special committee would be
established only after House Commission IX on financial and
development planning affairs had handed over the findings of the
working committee's investigation into the operation of the
liquidity funds scheme.

"House Commission IX will be asked to present its
investigation findings at a plenary session immediately so that
the House leadership can ask the House consultative body to set
up a special committee," he said.

A number of former government and central bank officials and
private bank owners are allegedly implicated in massive misuse of
the funds. Former Bank Indonesia governor Soedradjad Djiwandono,
former finance minister Bambang Subianto, former owner of Bank
Umum Nasional Mohammad "Bob" Hassan, and former president of Bank
Dagang Nasional Indonesia Syamsul Nursalim, have all been grilled
by the Attorney General's Office over the allegations.

Following a leaked audit report prepared by the Supreme Audit
Agency (BPK), the commission alleged that Rp 80 trillion of the
funds, which were provided to help ailing banks in 1997 and 1998,
was channeled through improper procedures.

Tosari said the special committee would follow up on all the
working committee's findings and the BPK audit.

"The special committee's findings will be handed over to the
Attorney General's Office to be acted on in accordance with the
law," he said, adding that the House has also asked the BPK to
audit the Indonesian Bank Restructuring Agency (IBRA).

Paskah Suzeta, a legislator from the Golkar Party, said that
his faction agreed with the proposed investigation as a follow-up
to the working committee's findings.

"It would only be an exercise in time-wasting if the House
were to carry out an investigation from the early stages given
that a similar investigation has already been conducted," he
said.

Abdul Kholiq Achmad, secretary of the PKB faction, lauded the
House's decision to investigate the rampant corruption of the
past.

"Our faction will fight for a thorough and transparent
investigation into the massive use of the funds so as to let the
people know who the big-time perpetrators of corruption were in
the past," he said. (rms)