Lawyers proclaim Djoko's innocence

Lawyers proclaim Djoko's innocence

JAKARTA (JP): Defense attorneys of Djoko S. Tjandra, the main
defendant in the high-profile Bank Bali scandal, insisted on
Monday that their client had not caused any loss to the state as
the Rp 546 billion (US$61.3 million) commission for PT Era Giat
Prima (EGP) was the bank's own money.

Reading out a 1,000-page written rebuttal to the 18-month jail
term earlier sought by prosecutor Antashari Azhari for Djoko, the
team of eight defense attorneys, led by O.C. Kaligis, described
the jail term sought as outrageous.

"The money received by PT EGP from Bank Bali is purely the
bank's money and to date is still in PT EGP's account in Bank
Bali and has not been recouped by the state. Not even one rupiah
belonging to the state has been squandered," one of the eight
lawyers said at a South Jakarta District Court hearing, presided
over by judge Soedarto.

"The prosecution has failed to prove in court that the
defendant has caused loss to the state. Therefore, the Rp 546
billion rightfully belongs to the defendant and should be
returned to him."

Djoko, the director of trading and investment at PT EGP, is
accused of being involved in the disbursement of Bank Bali's
interbank loans from closed bank BDNI, an action that caused
losses to the state.

Bank Bali then paid a Rp 546 billion commission to PT EGP for
the firm's assistance in recouping the interbank loans, which it
never did.

Antashari has charged that the defendant violated Paragraph 1a
of Article 1 of the 1971 Corruption Law.

"He deserves a jail term of one year and six months, and
should pay the maximum fine of Rp 30 million," prosecutor
Antashari Azhari said at a previous court hearing on Monday of
last week.

Article 1 of Law No. 3/1971 carries a maximum life sentence
and a fine of Rp 30 million.

The scandal originated from the failure of three private banks
-- Bank BDNI, Bank Tiara and Bank Umum Nasional -- to repay a
total of Rp 904 billion to Bank Bali, a debt which remained
outstanding when the three of them were closed by the Central
Bank in late 1998, due to poor financial record-keeping.

A verification by the Indonesian Bank Restructuring Agency
(IBRA) resulted in the disbursement of Rp 904 billion in payment
to Bank Bali, which verification had reportedly been based on
prudential principles and verification conducted jointly with
Bank Indonesia (the Central Bank).

Judge Soedarto adjourned the next hearing to next Monday, when
Antashari will reply to the rebuttals by the defendant's team of
lawyers. (ylt)