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)