No plans to give IBRA legal indemnity: Laksamana
The Jakarta Post Jakarta
The government denied it was drafting a regulation which will give legal indemnity to Indonesian Bank Restructuring Agency officials once the agency is closed.
State Minister of State Enterprises Laksamana Sukardi, whose office oversees IBRA, said on Tuesday the regulation, in the form of a presidential decree, would only provide protection for IBRA officials from lawsuits filed by dissatisfied debtors.
"There are plenty of unhappy debtors whose assets were seized or taken to courts by IBRA officials. Some then filed lawsuits against those individuals, and probably even threatened them.
"It's this kind of legal protection that we want the officials to have. But, this kind of protection will not be applied if the officials have violated the law in carrying out their tasks.
"If a law has been broken, then no one is above the law," said Laksamana.
IBRA was established in 1998 and was tasked with taking over assets from former bank owners and troubled banks as part of the government's bank restructuring program in the wake of the late 1990s financial crisis.
The agency is to be dissolved on Feb. 27, the draft decree of which is still being formulated and is expected to be finalized in near future, according to a source at the State Palace.
The controversy flared up in the past few days over press reports saying that the draft contains a clause protecting current and former officials of the agency from possible legal proceedings.
It comes at a time of public outcry over the agency's performance.
IBRA, the constant target of criticism for selling assets at hugely discounted prices, has been also on the receiving end of harsh criticism for being too lenient on a number of major debtors. The police are also currently investigating alleged violations by IBRA officials in distributing government bailout funds to troubled banks during the crisis.
Laksamana's remarks, however, should ease the tension.
IBRA Chairman Syafruddin Temenggung also brushed aside such a clause, saying the controversy has been blown way out of proportion.
He clarified that, upon IBRA's establishment, there was a government ruling stating the agency's officials would be provided legal indemnity, so that they could carry out their tasks -- seizing, taking over and selling assets as well as freezing accounts of debtors -- without having to worry over possible lawsuits launched against them.
"This is what legal indemnity means. But, if there are findings that relate to irregularities or corruption, then they would not enjoy that protection," Syafruddin said, adding that the ongoing of investigation into the alleged misused of funds in the 502 account should serve as an example. The account contains government bailout funds for banks.
"In the 502 account case, the investigation should go on. So, in principle, no one is above the law."
Earlier, Chief Justice Bagir Manan said that to extend to any body legal indemnity would be against legal principles.
"Legal indemnity is a violation of the principle of equality before the law. If you want to do that, it has to be at least regulated under a law (not a presidential decree)," Bagir said.