Wed, 06 Jul 2005

Prabowo quizzed over Mandiri case

JAKARTA: PT Kiani Kertas president director Prabowo Subianto was questioned at the Attorney General's Office on Tuesday in connection with a lending scam at Bank Mandiri that allegedly caused Rp 12 trillion (US$1.28 billion) in state losses.

It was the first time Prabowo, former son-in-law of former president Soeharto, was questioned over the case. He failed to respond to a summons last week.

Pulp and paper company PT Kiani is one of the debtors at Bank Mandiri, with its borrowing amounting to $201 million. Other debtors are broadcasting company PT Lativi Media Karya, PT Siak Zamrud Pusaka, PT Cipta Graha Nusantara/Tahta Medan and PT Arthabhama Texindo/Arthamustika Texindo.

Three former top officials at Mandiri, including former president director E. CW. Neloe, and four executives from the debtor companies have been named as suspects in the case and detained by the Attorney General's Office. -- JP