Probo named suspect in bank scam

Probo named suspect in bank scam

JAKARTA (JP): Former president Soeharto's step brother
Probosutedjo was named on Thursday as a suspect in the liquidated
Bank Jakarta's credit scam, but he strongly protested his
innocence and expressed confidence about escaping from the police
allegation.

"I didn't inflict any financial losses on my bank customers or
even the government. On the contrary I even helped (by granting
loans) to many small-scale businesspeople to develop their
businesses," he told reporters at the National Police
headquarters.

Probosutedjo made the remarks after being questioned by the
National Police for allegedly breaching the bank's legal lending
limit.

He said that he had not appointed any lawyers to represent him
as he believed that he could defend himself before the police.

"I know the substance of the allegations and I'm sure that I
can make people understand that Bank Jakarta is a small and
unworthy bank (as compared with other notorious big banks)," he
said.

Probosutedjo, however, admitted that the bank did violate the
legal lending limit. Most of the bank's credits were granted to
his own widely diversified Mercu Buana group.

"We only channeled Rp 44 billion (US$5.5 million) to companies
under the Mercu Buana flagship, but the amount of the channeled
money was still far bellow that kept at the bank," he said,
adding that Rp 64 billion was kept in the bank under the group
account.

However, the legal lending limit was set not to exceed the
bank's paid-up capital, which in the Bank Jakarta case reached Rp
23 billion, a police source said.

Bank Jakarta, 84 percent of which was owned by Probosutedjo,
was one of the 16 banks the government closed last November
because of legal lending limit violations.

The police's investigation into the liquidated banks has
focused mainly on suspicions of violations of the banking
regulations, including the owners' failure to report deviations
to the authorities.

If found guilty, a suspect faces a maximum punishment of six
years imprisonment and a Rp 6 billion fine.

"I am not afraid. I didn't inflict any losses on any parties
at all," Probosutedjo reiterated.

Arriving in a Mercedes Benz sedan, Probosutedjo seemed to be
calm and composed when answering a bombardment of questions from
reporters. (emf)