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)