No blanket travel ban for bankers: Attorney General

No blanket travel ban for bankers: Attorney General

JAKARTA (JP): Attorney General Marzuki Darusman said on Monday
that the planned travel ban would be imposed only on a limited
number of bankers.

Marzuki said that bankers who were suspected of having
committed a crime, particularly the destruction of evidence,
would be prohibited from travel abroad.

"We will start discussions of the travel ban policy this
afternoon ... But what is clear is that there will be no massive
travel ban," he told reporters following an internal meeting.

"The travel ban will only be implemented when it is deemed
necessary," he added.

He expressed confidence that the bankers would not leave the
country during the impending investigation, pointing out that
they could have left when the case broke earlier this year.

Marzuki's comments contradicted earlier statements by the
government, raising speculation that the government was easing
pressure against bankers alleged to have abused government
liquidity support funds.

Both Marzuki and Finance Minister Bambang Sudibyo told
reporters last week following a meeting with Head of the Supreme
Audit Agency (BPK) Satrio B. Judono, that travel bans would be
immediately imposed against the owners and management of 42
commercial banks to facilitate an investigation by the Attorney
General's Office.

The 42 banks were among 48 banks that received some Rp 144.5
trillion (US$17.41 billion) in government liquidity support
between 1998 and 1999 to bailout the banks amid major runs.

But BPK said in its recent audit report that more than Rp 138
trillion of the emergency loans had been used in violation of
banking regulations. The loans were supposed to be used to
reimburse depositors, but the bankers instead used the money to
lend to affiliated businesses, for currency speculation or
repaying loans of subsidiary companies.

The travel bans were supposed to have been implemented last
week.

Separately, Finance Minister Bambang Sudibyo said his office
had sent the list of bankers that should be banned from traveling
out of the country to the Attorney General's Office.

Bambang said that it was now up to the attorney general to
implement the travel ban.

"Please ask the attorney general because he's the one who has
the authority to impose the travel ban," Bambang said.

"Because the case involves the crime of destroying evidence,
the authority to impose the travel ban is in the hands of the
attorney general," he added.

Bambang declined to disclose the names or the number of
bankers included on the travel ban list.

He said that his office received the names of bankers that
should be banned from traveling from BPK on August 15, and after
studying the list, he sent it to the Attorney General's Office
the next day.

Last week, Marzuki said his office would investigate the
owners and management of 10 closed banks because there was
sufficient supporting data.

The banks include Bank BDNI, Bank Umum Nasional, Bank Utama
(Pesona), Bank Pelita, Bank Modern, Bank Istimarat, Bank
Servitia, Bank Centris, Bank Deka and Bank Aspac.

Marzuki also said at the time that some bankers had destroyed
evidence in an attempt to get off the hook. (rei/bby)