Indonesian Political, Business & Finance News

House team says Baramuli is involved in Bank Bali scandal

| Source: JP

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)

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