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)