House tells Marzuki to mull reopening Texmaco case

JAKARTA (JP): The House of Representatives (DPR) urged the Attorney General's Office on Friday to reopen its investigation into the Texmaco alleged loan scandal if new evidence came up.

Despite an often heated debate during a joint hearing of House Commission II on home and legal affairs and Commission IX on financial and development planning affairs with the Attorney General's Office, legislators acknowledged they could not fault the office's reason for halting the investigation due to a lack of evidence.

"The Attorney General's Office has the authority in issuing the instruction to stop an investigation into the case in accordance with the law," chairman of Commission II Amin Aryoso, who presided over the four-hour session, said.

"However, the office has to reopen the case and restart its investigations if any new cause or evidence of violations of laws emerge."

Attorney General Marzuki Darusman refuted allegations that external influence led to the decision to drop the case.

"There was no interference from anywhere to stop the investigation. It was the autonomous decision of the Attorney General's Office," Marzuki insisted.

"It's not that we ignored social justice in taking this decision, but we have to ... concerning that we have to give a chance to those businessmen to pull up our ailing economy."

Commission II deputy chairman Hartono Marjono said the House would keep working on the investigation after learning there were indications of banking crime in the case.

"Anyway, today's hearing is a good step in upholding the law. It could be considered public accountability of the Attorney General's Office in its decision to drop the Texmaco case," he told journalists.

President Abdurrahman Wahid has defended Marzuki's decision, saying Texmaco's business should be protected.

Then state minister of investment and state enterprises development Laksamana Sukardi was one of the first officials to reveal the scandal in March.

Laksamana said the giant textile and machinery company obtained Rp 9.6 trillion (US$1.15 billion) in loans from state banks during at the peak of the country's economic crisis in 1997 and 1998.

In the report, Laksamana alleged Texmaco received the loans by bending banking rules after it received dispensations from then president Soeharto. (01)