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)