Indonesian Political, Business & Finance News

House, BPK, BI tightlipped over bank audit result

| Source: JP

House, BPK, BI tightlipped over bank audit result

JAKARTA (JP): The leader of the House of Representatives was
tight-lipped on Tuesday about results of the
PricewaterhouseCoopers audit into the high-profile Bank Bali
scandal.

Bank Indonesia (BI) Governor Sjahril Sabirin and his deputies
also quietly slipped away from waiting reporters when they were
spotted visiting the Supreme Audit Agency (BPK) headquarters.

BPK and PricewaterhouseCoopers were ordered by the House to
verify Bank Indonesia's audit concerning the scandal. BPK was
given until September 7 to hand over its audit to the House.

House deputy chairman Abdul Ghafur left his office after BPK
submitted the results in the afternoon.

BPK investigation chief Bambang Wahyudi reluctantly spoke to
reporters after meeting with Bank Indonesia senior officials, but
his responses were evasive.

Bambang acknowledged the agency and the international auditor
found irregularities in the Bank Bali case.

He declined when asked to point out the irregularities.

Asked whether the audit also included investigation into the
bank accounts of influential people allegedly involved in the
scandal, he said the agency did not have the authority to check
bank accounts according to banking secrecy regulations and the
central bank ruling.

"BPK has no authority, only Bank Indonesia can do that."

He backtracked later after a meeting with Ghafur and said
there was a probe into the personal bank accounts.

When asked about the meeting with Bank Indonesia, Bambang said
that it was customary for the agency to invite the central bank
to inspect its audit result in case Bank Indonesia needed
further clarification.

"It's a normal procedure. We showed our audit result to Bank
Indonesia for clarification."

He said the central bank officials provided input, but he
abruptly added that the agency decided it was not relevant.

Bank Indonesia officials are expected to meet with House
Commission VIII on banking and the state budget in a public
hearing.

The scandal stemmed from the transfer of Rp 546 billion from
the bank to PT Era Giat Prima as a commission for its help in
recouping interbank loans on closed banks.

The government argued Bank Bali should have not used the
services of EGP because the loans were guaranteed and said that
paying the huge commission increased the state budget costs of
recapitalizing the bank.

Members of President B.J. Habibie's inner circle were
reportedly involved in the scandal. There are rumors that the
transfer was a scheme to finance Habibie's presidential race in
November.

Opposition parties and several analysts have warned of efforts
to delay the investigation process of the scandal and to cover
up.

Former Cabinet minister Sarwono Kusumaatmadja feared the
unrest in East Timor could divert public attention from the
scandal.

"There have been efforts at a cover-up. When the Bank Bali
case is nearing the point of resolution, the government finds a
new case," he told a seminar.

"The East Timor case now seems to be used by the government to
cover up the Bank Bali scandal."

There has been escalating rioting in East Timor after last
week's referendum in which 78.5 percent of the eligible voters
chose independence.

The Habibie administration has come under fire for failing to
rein in rampaging pro-Jakarta militiamen who have attacked
proindependence supporters. The military has also been accused of
supporting the prointegration group during the violence. Hundreds
of people are believed to have been killed, and thousands have
fled the troubled territory by land, air and sea transportation.
(rei/udi)

View JSON | Print