Tue, 03 Oct 2000

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)