Pande defends loan disbursement

Pande defends loan disbursement

JAKARTA (JP): A former top official of the Indonesian Bank
Restructuring Agency (IBRA) said in court on Monday that the
agency's decision to pay Rp 904 billion (US$103.9 million) to
Bank Bali last year had followed proper procedures.

Pande Lubis told the South Jakarta District Court that he met
with officials of Bank Bali and Bank BDNI on April 5 before
deciding that the agency should disburse the money to Bank Bali.

Pande insisted that this meeting was part of the verification
process which IBRA must conduct before repaying loans that
companies under its care owed to other companies.

The money in question was an inter-bank loan from Bank Bali to
Bank BDNI, which was taken over by IBRA in late 1998.

Pande has been charged with corruption for his alleged role in
what has now come to be referred to as the Bank Bali scandal.

Some Rp 546 billion of the Bank Bali money found its way to PT
Era Giat Prima -- a company with alleged connections to the
Golkar Party and then President B.J. Habibie -- as commission for
securing the release of the money from IBRA.

Chief state prosecutor Tarwo H.D disputed in court on Monday
Pande's claim that he had fulfilled the verification process.

The trial was adjourned to next week. (01)