Wed, 08 Sep 1999

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)