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)