Prabowo to face the music at AGO

JAKARTA: The Attorney General's Office (AGO) said on Monday it will question retired three-star general Prabowo Subianto this week in connection with an alleged lending scam at the giant state-owned Bank Mandiri.

Head of the AGO investigation team Arnold Angkouw said Prabowo will be questioned as the owner of pulp and paper firm PT Kiani Kertas that obtained a loan from Bank Mandiri, which allegedly became a bad debt.

However, Arnold declined to specify the date for the questioning of Prabowo, a former son-in-law of former president Soeharto.

Bank Mandiri disbursed a total of US$201 million in loans to PT Kiani Kertas and recently agreed on a restructuring agreement with the company over its non-performing debt.

The restructuring agreement included an extension of three years for Kiani to settle its entire debt to Bank Mandiri, with an interest of 6.5 percent annually.

Five other debtors were also investigated by the AGO, including private broadcasting company PT Lativi Media Karya. --JP