President pledges to carck down on corruption

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)