No changes of deputies, says new IBRA chief
No changes of deputies, says new IBRA chief
The Jakarta Post, Jakarta
Chairman of the Indonesian Bank Restructuring Agency (IBRA)
Syafruddin Temenggung said he would not replace his five
deputies, but confirmed plans for adding two directors in an
effort to expedite the agency's bank restructuring work.
"There'll be no replacement of the deputies as I'll only speak
of organizational structure. There will continue to be five
deputies and they will be supported by five divisions,"
Syafruddin said on Wednesday.
The newly-appointed chief said the restructuring was aimed at
speeding up IBRA's work of restructuring ailing banks under its
supervision.
He said IBRA's organizational shake-up would allow him to
create a working environment that was more in line with the
principles of good corporate governance (GCG).
GCG requires that the principles of transparency,
responsibility and accountability underpin decision making so as
to prevent unfair and controversial transactions within the
agency.
Some believe Syafruddin's predecessor I Putu Gede Ary
Suta's .. month term as IBRA chief was brought to an end due to
the lack of GCG.
Ary Suta imposed what critics said was a centralistic approach
that although simplified decision making, alienated him from his
staff.
The policy also overturned IBRA's built-in control mechanisms,
which one IBRA official said had made Ary Suta's policies
controversy-prone.
Ary Suta found himself sandwiched between an unsupportive
staff, and a public irked by his bent for controversial policies.
Critics said he tried to quell criticism from within IBRA by
reshuffling his deputies last November.
Syafruddin did not explain why he wanted to keep the serving
deputies, whom some suspect of being Ary Suta's men.
Syafruddin had said earlier that he planned to replace them
but wanted to discuss the matter first with State Minister of
State Enterprises Laksamana Sukardi, who is in charge of IBRA.
Analysts warned that too much reshuffling would derail the
agency's tight timetable. IBRA has only two years left before its
mandate expires in 2004.
Instead, Syafruddin said he would delegate greater authority
to his deputies.
According to Syafruddin, this had been recommended by the
Oversight Committee, which is the IBRA watchdog.
"An IBRA chief should not shoulder too many burdens on his
own," Syafruddin explained.
On his plan to add two new directors, he said they would fill
out positions in the agency's legal and financial management
divisions.
Also part of IBRA's overhaul is the setting up of three
special divisions.
He referred to them as the special divisions for the planning
and development of the banking sector, for matters related to
bank asset transfer kits (ATK) -- which contain documents on the
bad loans IBRA took over from the banks -- and for matters
related to Bank Indonesia's liquidity support loans, better known
as BLBI.
Their creation may signal Syafruddin's priorities at IBRA.
The special division on banking sector development goes
straight to the core of IBRA's duty to restructure banks.
IBRA has been faulted for neglecting the task and putting it
on the backburner amid pressing demands for faster asset sales
and distractions resulting from politicking and outside
interference.
Meanwhile, improper ATKs have been slowing IBRA's asset
disposal work, with an audit estimating that some 80 percent of
the ATKs contained irregularities.
The BLBI issue centers on the stalled repayment of some US$10
billion in debts former bankers owe the government through IBRA.
Syafruddin said on Wednesday that the details of his proposed
changes were subject to further discussion.