House team says Baramuli is involved in Bank Bali scandal

JAKARTA (JP): The House of Representatives' special team investigating the Bank Bali scandal said on Friday that the head of the Supreme Advisory Council (DPA), Arnold A. Baramuli, "is clearly" involved in the scandal.

"Our colleagues perceived that he is clearly involved in the scandal," said investigative team deputy head Erwin Sjahrir.

Team member Ichsanuddin Noorsy conceded. "Based on various facts, Baramuli is involved. My personal view is that Baramuli should not be trusted," he said.

Baramuli was summoned for questioning by the investigation team on Thursday morning.

The questioning of Baramuli, a senior politician who has often proven his skills in maneuvering through the country's political minefield, drew more than a hundred reporters and observers.

Baramuli, who is also President B.J. Habibie's chief adviser, said once again after the questioning session that he was not involved in the scandal.

He said that the scandal should be the responsibility of the country's banking authorities, particularly Minister of Finance Bambang Subianto and Chairman of the Indonesian Bank Restructuring Agency (IBRA) Glenn Yusuf.

The Bank Bali scandal centers on the transfer of Rp 546 billion to PT Era Giat Prima as a commission fee for helping the bank recoup interbank loans from a closed-down bank.

The bank should not have had to use the services of EGP because all such loans are guaranteed by IBRA, which is an arm of the finance ministry, under the government blanket guarantee program.

EGP is owned by two businessmen linked to Habibie's inner circle. There have been allegations that the Habibie camp was trying to use the money for political purposes ahead of the November presidential election.

Bambang and Glenn earlier indicated to the House Baramuli's involvement in the scandal.

Former Bank Bali president Rudy Ramli has also referred to Baramuli as having an active role in pushing through the Bank Bali-EGP transaction.

Baramuli has called Rudy a liar and a drug addict.

Baramuli also accused senior officials of the Indonesian Democratic Party of Struggle (PDI Perjuangan) of intentionally engineering the Bank Bali case from a civil law case into a political case which has caused instability.

PDI Perjuangan won 34 percent of the vote in the June general election. The party's chairwoman, Megawati Soekarnoputri, is the strongest opponent of Habibie at the upcoming presidential election.

Legal immunity

Meanwhile, PricewaterhouseCoopers (PwC) asked on Thursday that the House seek from the court legal immunity in order for it to disclose its full audit results of the Bank Bali scandal.

"If the House can get immunity from the court, it (the full audit report) can be disclosed here," said Frans H. Winarta, a PwC legal consultant, at a hearing with the House Commission VIII on banking and finance.

PwC was invited last month both by IBRA and the Supreme Audit Agency (BPK) to audit the Bank Bali case.

But at the request of BPK, the international accounting firm had to issue two types of report: an abridged version and a complete version. The abridged version does not include the flow of funds in the Bank Bali case, which could reveal who was involved in the scandal. The complete version has only been given to the police as stipulated by Law No. 5/1973 on BPK.

PwC did not disclose the complete version to the House commission, citing banking secrecy codes and its contract with BPK.

"PwC follows the laws in the country in which it conducts its audit," said John Wayne Campbell, PwC lead auditor.

PwC, however, has said that the fund-tracing exercise was incomplete because Bank Indonesia did not allow it to audit certain bank accounts. (rei)