IBRA insists ad hoc judges be used in bankruptcy cases

IBRA insists ad hoc judges be used in bankruptcy cases

JAKARTA (JP): Legal affairs chief of the Indonesian Bank
Restructuring Agency (IBRA) Agustus Sani Nugroho stressed on
Tuesday that the agency still wanted independent ad hoc judges to
examine its bankruptcy cases despite "resistance" from head of
the Jakarta Commercial Court.

Agustus said that the agency was exercising the opportunity
provided by the 1998 law on bankruptcy which allowed IBRA to
request ad hoc judges for all cases filed in the Commercial Court
or bankruptcy court.

"This is a straightforward thing. Why should we make it
difficult... Our credibility in the eyes of investors is at
stake," he told a small group of journalists.

Agustus was responding to a rejection made by head of the
bankruptcy court, Sihol Sitoempul, against IBRA's request to
assign ad hoc judges to examine three bankruptcy cases.

Sihol said last week that none of the four ad hoc judges
appointed through a presidential decree last year could examine
IBRA's cases because the judges had yet to take the oath of
office before the Commercial Court.

He said that the ad hoc judges declined to take the oath until
the court agreed to allow a "dissenting opinion" to be recorded
on the last page of a verdict document to notify when a verdict
was reached after a split decision.

Agustus agreed that the dissenting opinion be disclosed to the
public so that people would know the decision made by the ad hoc
judges and regular judges.

"Let it be transparent," he said.

But Sihol maintained that under normal procedure, a dissenting
opinion must be kept confidential in court records and how a
verdict is reached should not be disclosed as it might create
further arguments and confusion.

Agustus warned that the government must solve this problem
quickly as transparency and legal certainty are crucial to the
country's economic recovery.

He also pointed out that the assignment of ad hoc judges to
examine IBRA's bankruptcy cases was part of the letter of intent
agreed by the government and the IMF in January.

Meanwhile, IMF consultant Gregory Churchill said on Tuesday
that if existing ad hoc judges declined to take the oath, the
government must immediately appoint new ad hoc judges.

He said that the idea of disclosing a dissenting opinion was
very positive, but it could not be accommodated by the existing
law.

IBRA is filing a bankruptcy petition against three of its
uncooperative debtors including trading firm PT ALatief
Corporation which owes the agency some US$16.93 million in bad
debts, crude palm oil processor PT Sumi Asih (Rp 73.94 billion
and $16.73 million), and diversified PT Ometraco Corporation
($53.18 million).

IBRA has lost earlier bankruptcy cases. (rei/udi)