House grills top finance, monetary men

House grills top finance, monetary men

JAKARTA (JP): Banking authorities steadfastly refused to meet
demands made by the House of Representatives during a heated
debate on Thursday to disclose the names of government leaders
allegedly involved in the high-profile Bank Bali scandal.

Finance minister Bambang Subianto declined to ascertain
whether there was a criminal act in the Bank Bali case and to
identify powerful figures implicated in the Rp 546 billion (US$78
million) scandal, arguing that the investigation process was not
yet completed.

"We expect to complete the audit process in two weeks time.
After that we'll hand over the results to the National Police and
the attorney general," Bambang told House Commission VIII for
state budget and finance.

Bambang added that the banking authorities would consult with
the police and attorney general on what legal action to take
against the culprits.

Bambang, Bank Indonesia Governor Sjahril Sabirin, Indonesian
Bank Restructuring Agency (IBRA) chairman Glenn S. Yusuf and
other top monetary officials, who appeared nervous during the
session, were grilled in a heated hearing which was partly
broadcasted live on private television station, SCTV.

Separately, an informed source disclosed on Thursday night
that President B.J. Habibie was considering dismissing Bambang
and Glenn.

Legislative members, including those from the ruling Golkar
Party, tried to pressure the three top finance and monetary
officials under a barrage of inquisitive questions from the start
of the session at 10:00.

The House members focused questions on the possible
involvement of powerful people in the scandal.

But until the hearing ended at 22:00, the House could not
elicit any names from the officials.

A House member hinted that the House might exercise its right
to conduct its own investigations because it did not trust the
government's probe or the audit to be made by independent
accounting firm, PriceWaterhouse-Coopers.

A document containing the transcript of confessions made by
former Bank Bali president Rudy Ramli on the involvement of
Cabinet ministers, senior government officials and business
tycoons in the scandal was circulated among legislators and
journalists on Thursday.

The names included Bambang, Sjahril, Supreme Advisory Council
head A.A. Baramuli, State Minister of the Empowerment of State
Enterprises Tanri Abeng and President B.J. Habibie's younger
brother Suyatim "Timmy" Habibie.

The Bank Bali case, first revealed to the media late last
month, centered on Bank Bali's transfer in early June of some Rp
546 billion to PT Era Giat Prima (EGP) as a commission for the
firm's "service" in assisting the bank to recoup some Rp 904
billion in interbank claims on closed-down Bank BDNI.

EGP is a company owned by businessmen Djoko Chandra and Setya
Novanto who are affiliated with Golkar. Most of the commission
allegedly landed in the hands of Habibie's close associates in
charge of leading the team to secure his election in the November
presidential election.

Bambang flatly denied the allegations, pointing out that the
reimbursement of Bank Bali's interbank claims was made in
accordance to existing regulations.

"The transfer was made according to existing procedure,"
Bambang answered emotionally when legislators repeatedly
questioned the authorities' policy.

But he acknowledged the transaction between Bank Bali and EGP
was questionable, insisting that Bank Bali should not have used
the service of EGP because interbank claims were guaranteed
through the government blanket guarantee program.

Sjahril announced that the Rp 546 billion of missing funds
from Bank Bali was returned in full, but legislators continued to
pressure him to disclose names of people who received the money.

"I can't disclose the names," Sjahril said, invoking a banking
secrecy clause and the fact that the investigation was not yet
completed.

Legislators were visibly irritated when the three top
officials devoted most of the explanations to procedural details
of the reimbursement. They insisted that the audit was still
underway each time they were asked where the money was
distributed from the EGP and Djoko accounts.

"It's impossible that Rudy Ramli would have simply agreed to
such a transaction. There must have been powerful people
conspiring to push the deal," said Golkar legislator Ichsanuddin
Noorsy.

"If you insist you're not implicated in the irregularities,
then you have no reason not to disclose the names of the powerful
people involved," lambasted Golkar legislator Ekky Syachrudin in
a high tone to the cheers and applause from a large crowd of
journalists and other observers witnessing the hearing.

"You have to realize that this scandal has caused the rupiah
to plunge and prices to soar again, causing more hardships for
people," Ekky retorted.

"Please don't stall too much on technicalities we already
know. If you really have good intentions to get to the bottom of
this case, you must disclose the names of people involved," said
Nico Daryanto, a legislator of the Indonesian Democratic Party.

"We (the current legislators and present government) only have
a little time left in office, so let's dedicate our best to this
nation. We must swallow the bitter pill if necessary," Nico
added.

The current administration has three months left before ending
its term, while the current House will end their tenure in
October.

The hearing also revealed how an increasing number of Golkar
legislators, who used to tow the government line, lambasted the
Habibie administration and consequently damaged his chance of
being elected in the November presidential election.

Another Golkar loyalist, Aulia Rachman, asked Bambang after
long hours of the fruitless session: "Did you or did you not meet
with Rudy Ramli and Djoko Chandra sometime on May 25? Please
answer with a simple yes or no."

Bambang replied with a reddened face: "I met with Rudy but I
don't remember when, because I had so many guests ... In
addition, my door is open to everyone." (rei)