Sun, 30 Aug 1998

President pledges to carck down on corruption

JAKARTA (JP): President B.J. Habibie vowed yesterday to severely punish anyone, even former president Soeharto and his family, proven to be involved in corrupt, collusive or nepotistic practices.

Speaking at a plenary consultation with the Supreme Advisory Council, Habibie pointed out that people who had borrowed or used state funds, including bankers, were obligated to repay the money.

"If they are not able to repay their debts, they will be punished as severely as possible, not just 5 years or 10 years but 50 years accumulatively," Habibie was quoted by the council's vice chairman, Achmad Tirtosudiro, as saying during their meeting at the Bina Graha presidential office.

When asked whether Soeharto's family was considered off limits regarding such a punishment, council chairman A.A. Baramuli replied: "(It's) for all people without exception as long as there is sufficient evidence (of wrongdoing)."

Achmad said Habibie used the meeting with the 45 member council as an opportunity to evaluate his administration's achievements on its 100th day in power. Habibie assumed the presidency on May 21, seconds after Soeharto resigned amid strong domestic pressure from an escalating economic and political crisis.

"Just wait. It won't be long," Habibie promised his advisors regarding the actions he would take against those guilty of corruption.

Many observers have been openly skeptical over Habibie's ability and will to force Soeharto's family to return the wealth they allegedly amassed illegally during his 32-year regime.

Critics say Habibie has done little against his former mentor, citing that up to now he has only dared to withdraw Soeharto's presidential security guards.

The most significant move taken so far against the Soeharto family's interests has been the dismissal of Lt. Gen. (ret.) Prabowo Subianto, Soeharto's son-in-law, for his implicated role in the abduction and torture of political activists.

In a meeting with senior editors on Friday, the President strongly asserted that he was not a mere "photocopy" of his predecessor.

"The spirit is different, the challenge is different," he pointed out.

During yesterday's meeting, the President also explained the measures he would take to settle bad debts owed by the country's bankers.

The government has injected about Rp 140 trillion (US$10.7 billion) in liquidity support into the country's ailing commercial banking sector. Analysts doubt the government will be able to regain the money.

The government decided last week to nationalize four private banks, including Bank Central Asia (BCA) and Bank Danamon, and suspended the operations of three banks, including Bank Dagang Nasional Indonesia (BDNI).

BCA, which is 30 percent owned by Soeharto's children, and Danamon and BDNI alone are cumulatively obliged to repay the government $7 billion from the bailout.

"The money has been lent to them. It is not aid or a subsidy, but a debt," the President noted. (prb)