Parties warn of cop-out in bank scandal

Parties warn of cop-out in bank scandal

JAKARTA (JP): Major opposition political parties warned the
public on Monday to be on guard for a possible compromise between
the government and the House of Representatives to settle the
Bank Bali scandal.

Secretary-general of the National Mandate Party (PAN) Faisal
Basri said a compromise might be attempted to spare high-profile
figures from prosecution.

"We all have to watch out for a possible compromise between
the government and the House in settling the Bank Bali scandal,"
he told a seminar.

Faisal said powerful individuals implicated in the scandal
were increasingly nervous because of more evidence pointing to
their involvement and amid mounting calls from the House for them
to resign or be fired.

He said a "political conspiracy" to stop influential people
from being implicated must be stopped.

Martin Panggabean, an economic consultant of the National
Awakening Party (PKB), stressed the importance for all culprits
to be tried.

Banking law expert Pradjoto revealed in late July the huge
commission of Rp 546 billion (US$73 million at the current rate)
paid by Bank Bali to PT Era Giat Prima (EGP) for assisting the
bank to recoup some Rp 904 billion in interbank claims on
liquidated Bank Dagang Negara Indonesia (BDNI).

Central bank officials have said Bank Bali should not have
used third party assistance because reimbursement of the
interbank claims was assured by the Indonesian Bank Restructuring
Agency (IBRA) through the government blanket guarantee program.

Use of the funds for the commission increased the state
budget's costs for recapitalizing the bank.

Media reports speculated that the payment was engineered by
loyalists of President B.J. Habibie to raise funds for his
reelection campaign for the presidential race in November.

High-profile figures allegedly involved in the scandal include
Finance Minister Bambang Subianto, Bank Indonesia Governor
Sjahril Sabirin, State Minister of the Empowerment of State
Enterprises Tanri Abeng, head of the Supreme Advisory Council
A.A. Baramuli, businessman M. Manimaren and Habibie's younger
brother Suyatim "Timmy" Habibie.

The House of Representatives Commission VIII on finance and
banking urged Habibie on Friday to dismiss Bambang and IBRA
chairman Glenn S. Yusuf over the scandal.

Legislators have blamed the two top banking authorities for
the emergence of the scandal.

They also said Sjahril should resign if his involvement was
proved.

PAN and PKB also supported calls to protect former Bank Bali
president Rudy Ramli to allow him to reveal the facts of the
transaction.

"Rudy Ramli has to receive legal protection to allow him to
reveal the case freely without pressure from anyone," said
coordinator of Indonesian Corruption Watch Teten Masduki.

Although EGP has returned in full the Rp 546 billion
commission, many continue to argue that people involved in the
case should face legal prosecution because a crime was committed.

Commission VIII considered summoning Rudy last week to a
special hearing on the scandal.

Rudy's lawyer Adnan Buyung Nasution balked at the demand,
saying that his client remained under investigation by the
police.

"Politicians can't just interfere like that. Don't try to
disturb my client," he said on Monday.

Nasution said political implications of the scandal were
overshadowing its legal aspects.

He declined to confirm the veracity of a document in
circulation which purportedly contains Rudy's acknowledgement of
the involvement of several top officials.

"I won't comment on that because when my client came to me he
didn't mention about the document."

Nasution said it was possible that some political parties were
blowing up the political aspects of the scandal to win popularity
ahead of the presidential election.

In a related development, chairman of the Indonesian Chamber
of Commerce and Industry (Kadin) Aburizal Bakrie said on Monday
that the scandal raised questions about legal certainty in the
country following the unilateral cancellation of the business
transaction between Bank Bali and EGP.

He said there should be an immediate court settlement to
ensure maintenance of confidence in the economy.

In a related development, Minister of Justice/State Secretary
Muladi said on Monday that the government would publicly disclose
investigation results of the Bank Bali case once it was
completed.

"The government will disclose it openly, but the investigation
process is still going on so we have to wait until all is
completed," Muladi said, pointing out there were separate
investigation measures conducted by Bank Indonesia, the police
and international auditor PricewaterhouseCoopers.

Muladi was speaking to reporters following a security and
political coordination meeting.

Separately, Minister of Home Affairs Syarwan Hamid said the
Bank Bali scandal allegedly involving several high-ranking
government officials should be thoroughly investigated.

"I think the President will be determined (to take firm
action)," he said after the same meeting.

Syarwan said President B.J. Habibie would "soon" issue a
statement on the Bank Bali case.

The Habibie administration is facing increasing pressure to
investigate the high-profile figures allegedly involved in the
Bank Bali case amid indications of efforts trying to cover up the
scandal.

Asked to comment on an offer made by former military chief
Gen. (retired) Edi Sudrajat to provide protection to former Bank
Bali president Rudy Ramli, Muladi said: "Why should he (Rudy) ask
for protection from a retired man. Why not ask the police or
attorney general." (rei/01)