House warns government of no-confidence motion

House warns government of no-confidence motion

JAKARTA (JP): The House of Representatives threatened on
Friday to propose a motion of no confidence in the Habibie
government if it did not act firmly and quickly in dealing with
US$70 million Bank Bali scandal.

House Commission VIII for state budget, finance and banking
said it would ask finance minister Bambang Subianto and Bank
Indonesia Governor Sjahril Sabirin to give a full account of the
scandal in a special meeting next week.

"Based on the account of the senior officials, we will decide
on what political action we will recommend to the government,"
said Golkar legislator Paskah Suzetta.

If the government refuses to meet the commission's
recommendations, "we may consider making a motion of no
confidence in the government," added Oke F. Supit, also from
Golkar.

Another Golkar member of the commission, Ichsanuddin Noorsy,
joined the attack on the government, citing attempts to sacrifice
"small fry" to protect government and political leaders
implicated in the scandal.

"I don't see any seriousness on the part of the government to
get to the bottom of the scandal," Noorsy said.

Demands are escalating for the firing of senior government
officials implicated in the scandal, especially after
confirmation by the Indonesian Bank Restructuring Agency (IBRA)
that Bank Bali transferred Rp 546 billion ($70 million) to PT Era
Giat Prima (EGP), a company controlled by the deputy treasurer of
Golkar, Setya Novanto

The payment was described as a "commission" for EGP's
assistance in recouping Rp 946 billion in interbank claims from
closed banks currently in IBRA's receivership.

IBRA and the central bank have insisted that Bank Bali should
not have used the company's services because the interbank claims
were covered by the government's blanket guarantee on bank
deposits and claims.

Controversy concerning the transfer heightened after a special
team in charge of securing the election of President B.J. Habibie
was alleged to have obtained a sizable portion of the booty.

Besides Novanto and his business associate Djoko Chandra, two
members of Habibie's inner circle -- State Minister of the
Empowerment of State Enterprises Tanri Abeng and chairman of the
Supreme Advisory Council A.A. Baramuli -- also are rumored to be
involved in the scandal.

Noted economists also criticized the government on Friday for
its half-hearted approach to investigating the scandal, which has
jolted trade in the rupiah and dealings on the stock market this
week.

"The investigation process is going too slowly," Emil Salim
said on the sidelines of a discussion on corruption.

The former economics minister urged the central bank to speed
up the investigation because the scandal was exerting serious
effects on the economy.

"The central bank should immediately freeze the bank accounts
of people implicated in the case," Emil added.

Marie Pangestu, an economist at the Center for Strategic and
International Studies, also condemned the sluggish pace of the
investigation.

"IBRA, Bank Indonesia and the Ministry of Finance are too slow
in investigating the case," Marie said.

"How long should it take to find out where the money went? ...
particularly in the current computer era.

"This has cast doubt on the government's political will to
uncover the real truth."

Marie warned that foreign and domestic investors were
anxiously watching the government's handling of the
investigation.

"The government must catch the real culprits," she said.

Meanwhile, Bank Indonesia summoned former Bank Bali president
Rudy Ramli for questioning on Friday morning.

Rudy avoided the swarm of waiting reporters by taking the back
door after the meeting with a deputy governor.

Sjahril declined to comment on the meeting, citing banking
secrecy rules.

"The top priority now is to recover the money stolen from Bank
Bali," he said.

Suspects

Separately, the National Police pledged on Friday to fully
investigate the scandal and said 10 people were declared
suspects.

"The National Police have promised the people that this case
will be investigated thoroughly to its conclusion and we will do
that," police spokesman Brig. Gen. Togar Sianipar said.

Togar identified the newly listed suspects as IBRA deputy
chairman Pande Lubis, MT and EKA of bank BDNI's treasury division
and IDG, a Bank Bali manager.

Six people earlier declared suspects are EGP's Setya Novanto
and Djoko Chandra and former Bank Bali directors Rudy Ramli,
Rusli Suryadi, Firman Soetjahja and Henri Kurniawan.

Bank BDNI, which was closed last August and is now in IBRA
receivership, was the debtor which owed Bank Bali more than Rp
1.2 trillion through interbank deals.

Togar added that eight more executives of IBRA were questioned
as witnesses on Friday.

They were Indra Rahtiko Sunyoto and Toto Budiarso of the
liabilities division, Pandu and Yusuf Wahyudi of the legal
division, assistant investment managers Gustiyanto and Toni
Fisiyanto and assistant operational managers Antonius and Hendro
Santoso.

"The list of witnesses will keep on expanding. Three more will
be called in on Monday," Togar said.

National Police chief of detectives Maj. Gen. Da'i Bachtiar
said that IBRA chairman Glenn Yusuf and central bank deputy
governor Miranda Goeltom could also be called as witnesses.

Meanwhile, Setya Novanto requested protection from the City
Police on Friday.

Accompanied by his lawyer, O.C. Kaligis, he claimed to have
suffered harassment since reports of the scandal broke.

Kaligis said his client received death threats in connection
with the scandal and only wanted "peace".

"As an Indonesian citizen, he has a right to (seek) legal
protection from the police," Kaligis said. (rei/ylt/vin)