Marzuki in Holand to probe graft

Marzuki in Holand to probe graft

JAKARTA (JP): Attorney General Marzuki Darusman has been in
the Netherlands since last week to probe a corruption case
involving a central bank subsidiary in Amsterdam.

The Attorney General's Office spokesman Moeljohardjo confirmed
that Marzuki departed on Friday, one day after his two
subordinates, prosecutors Mochtar Arifin and Ersiwo Zaimaru left
to investigate the allegations of graft at Bank Indover.

Marzuki himself had to lend a hand in the investigation to
make it easier for the prosecutors to perform their duty because
legal matters in the Netherlands are quite difficult, especially
banking matters, according to Moeljohardjo.

He said that he did not know when Marzuki would be back. "It
depends on the investigation and the needs, and on the legal
process in the Netherlands."

The state is suffering US$1 billion in losses due to the
misappropriation of the liquidity support of Bank Indonesia
(BLBI) by Bank Indover in Amsterdam and its affiliate Indover
Asia Ltd. in Hong Kong.

Prosecutors alleged that Bank Indover had illegally disbursed
US$1.5 million of the liquidity support to PT United Coconut
Indonesia, a company belonging to the wife of former head of the
Supreme Advisory Council A.A. Baramuli.

Baramuli, as well as some other people who formerly held very
important posts, like former Bank Indonesia governor Soedrajad
Djiwandono had testified in the scandal.

The case centered on the allegation about the misuse of some
Rp 144.5 trillion ($15.3 billion) of the liquidity support to 48
commercial banks.

Djiwandono was again summoned by the Attorney General's Office
on Wednesday in connection with the misuse of the liquidity
support by Bank Modern, Antara reported.

The bank's former chief commissary Samadikun Hartono has been
named as a suspect.

Prosecutors alleged that between 1997 and 1999 the suspect and
his colleagues applied for Rp 1.9 trillion credit to help it cope
with mounting financial problems due to the monetary crisis. The
central bank granted the request, but Bank Modern misused the
funds, causing the state to suffer Rp 140 billion in losses.

If found guilty, the suspect could face a possible 20-year
jail sentence. (sim)