Mar'ie denies misusing bank liquidity support

JAKARTA (JP): Mar'ie Muhammad denied on Wednesday allegations he was involved in abuse of multibillion dollar bank emergency liquidity support during his tenure as finance minister.

Mar'ie said he never set out to design a banking policy for personal gain.

"I had no intention to design a policy to seek profit for myself. Although as a human being, I'm not free from mistakes," he said on the sidelines of a business seminar.

"I'm sure that my other colleagues also did not have bad intentions."

Mar'ie was responding to the findings of the House of Representatives, which named him as well as other former senior economic ministers and top Bank Indonesia officials among those implicated in the loan scandal.

The House also named on Tuesday former coordinating minister for the economy, finance and industry Ginandjar Kartasasmita, Mar'ie's succeeding finance ministers Fuad Bawazier and Bambang Subianto, as well as Bank Indonesia Governor Sjahril Sabirin and his predecessor Soedradjad Djiwandono.

Legislators requested the attorney general follow up on the findings.

Mar'ie said the findings of the House special investigative team led people to believe the liquidity support policy was intentionally designed for abuse.

"This is dangerous. I think there's a group of people which is trying to stir up a hornet's nest," he said.

The government provided some Rp 164.5 trillion (US$22.08 billion) in liquidity support between late 1997 and 1998 to help banks facing massive runs on deposits amid plunging confidence in the industry. The funds also were used to cover the obligations of closed institutions.

But a general audit conducted by the Supreme Audit Agency (BPK) revealed that some Rp 80 trillion of the liquidity support might have been channeled inappropriately.

The bulk of the liquidity support went to four banks, including ones owned by relatives of former president Soeharto and their associates.

Separately, Bank Indonesia's legal affairs chief Amir Safruddin said the House findings only mentioned the former top government officials and Bank Indonesia officials as sources for the House investigative team, not as those implicated in the loan scandal.

"As sources, these people should be protected by the law," he told a news conference.

Amir said that a source could not be questioned as a suspect by the Attorney General's Office.

He said that questioning could only be carried out if there was enough preliminary evidence, which would only be available after BPK and the Development Finance Comptroller (BPKP) completed their investigative audit sometime in April or May.

The central bank has been under pressure to explain its role in channeling the liquidity support policy. There also have been mounting calls for Sjahril to step down from his position due to allegations he erred in the implementation of the policy.

Meanwhile, Attorney General Marzuki Darusman said that his office would meet on Thursday with BPKP to coordinate ways to immediately resolve the matter.

"We'll try to find practical ways," Marzuki said. (rei/01)