Indonesian Political, Business & Finance News

Reformist leaders called on to unite in solving bank scandal

| Source: JP

Reformist leaders called on to unite in solving bank scandal

JAKARTA (JP): Experts urged on Wednesday for the country's
reformist political leaders to unite to resolve the Bank Bali
scandal and prevent an outbreak of widespread violence.

Sarwono Kusumaatmadja, an outspoken former Cabinet member,
said political leaders had tended to pursue their own path in
unraveling the high-profile scandal.

"The case will only be solved fast if all political leaders
join forces," he told a seminar.

He suggested that political leaders could set up a joint
independent committee.

"If all political leaders could join forces to make a
political consensus and form an independent committee, Akbar will
follow them," said the former secretary-general of the ruling
Golkar Party, referring to the party's current chairman Akbar
Tandjung.

"Akbar is a person who is always looking for an 'umbrella',"
he said.

Sarwono warned of the possibility of widespread violence
occurring this month following the delay in the disclosure of the
scandal by the House of the Representatives.

The House decided on Tuesday to delay for another week the
Sept. 2 hearing with the banking authorities, who were to present
results of their investigations into the scandal.

Arrif Arryman, an economist at the National Mandate Party,
conceded.

He said that a consensus among political leaders should be
made this month to avoid mass demonstrations.

The Bank Bali scandal revolves around the "illegal" transfer
of some Rp 546 billion (about US$80 million) to PT Era Giat Prima
(EGP) as a fee for helping the bank recoup its interbank claim
worth Rp 904 billion on a closed-down bank.

The Indonesian Bank Restructuring Agency (IBRA) said earlier
that Bank Bali did not need the help of a third party because the
claim was guaranteed by the government.

EGP is a private firm linked to President B.J. Habibie's close
associates. The Habibie camp has been accused of using EGP to
raise funds to help bankroll Habibie's presidential bid in
November.

Habibie's associates have denied this. And the money has been
returned.

But the public is putting strong pressure on the case, calling
for an independent investigation and for all people involved,
including powerful figures, to be punished.

The Bank Bali scandal has apparently become a political battle
between the Indonesian Democratic Party of Struggle (PDI
Perjuangan) and the Golkar Party, the two largest vote-getters in
the June elections.

The scandal has made the ruling Golkar Party appear more
divided between Habibie loyalists and opponents, with indications
that Akbar supports the latter group.

Akbar is in Habibie's so-called six-member presidential
election "success team", which includes several senior ministers.

But sources said Akbar has been in increasing disagreement
with Habibie over party policies.

The Bank Bali scandal is one of Habibie's major obstacles in
the upcoming presidential race. Golkar may cancel its support for
Habibie if he fails to resolve the scandal satisfactorily.

Akbar has met twice with presidential hopeful Megawati
Soekarnoputri of PDI Perjuangan recently, raising speculation
that he might, with Habibie opponents at Golkar, support
Megawati.

Meilono Suwondho, deputy treasurer at PDI Perjuangan, called
on Akbar to withdraw Golkar's support for Habibie.

Earlier, Minister of Justice/State Secretary Muladi, also on
Habibie's "success team", distributed copies of a statement made
by former Bank Bali president Rudy Ramli denying the existence of
a diary containing the chronology of events and meetings with
several senior ministers and Habibie's men in the lead-up to the
transaction with EGP.

The diary had been distributed to the press by PDI Perjuangan,
after erasing the names of people involved.

The party has lodged a complaint against Rudy's denial
statement to the police.

Amien Arjoso of PDI Perjuangan said Rudy agreed that the diary
could be copied and distributed after erasing some details,
particularly the names involved.

Rudy came to Amien previously to seek legal advise.

Rudy reportedly was pressured by the Habibie camp to deny the
authenticity of the diary.

In a related development, Rudy's lawyer Adnan Buyung Nasution
lambasted on Wednesday the practice of distributing publicly
information given by a client to his lawyer. (rei/cst)

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