Second Bapindo director arraigned over loan scam
Second Bapindo director arraigned over loan scam
JAKARTA (JP): A second former director of Bank Pembangunan
Indonesia (Bapindo) was arraigned in court yesterday in
connection with the Rp 1.3 trillion ($620 million) loan scam at
the government bank.
Subekti Ismaun, 55, who was the bank's president between 1989
and 1992, was charged with corruption at the South Jakarta
District Court.
The state prosecutors said Subekti, in collaboration with
three other former directors, or separately, enriched himself, or
helped other people to enrich themselves, causing the government
to lose money.
He is the fourth suspect to be brought before the court in
connection with the loan scandal. Maman Suparman, formerly deputy
manager of the bank's Jakarta branch, was jailed for nine years;
Eddy Tansil, the businessman to whom the loans were issued, could
face life imprisonment; Towil Heryoto, also a former Bapindo
director, is still on trial in the same court.
Subekti headed the bank's board of directors during which most
of the crucial decisions to grant the loans, and then extend
them, were made.
The prosecution said Subekti failed to use his authority to
coordinate and supervise properly the loans extended to Tansil or
even to rectify the situation when it became apparent that
something was wrong.
As a result, he allowed Tansil to misuse the loans, originally
intended to finance a giant petrochemical project in Cilegon,
West Java, for personal interests.
Indictment
"His actions directly caused the state to lose $449 million
(Rp 962 billion)," chief prosecutor Tarwo Hadi Sadjuri said when
reading the indictment.
If found guilty under the 1971 anti-corruption law, he could
be facing a maximum of life imprisonment.
Two colleagues on the Bapindo board of directors, Sjahrizal
and Bambang Kuntjoro, are also in the custody of the Attorney
General's Office and are awaiting for their trials to begin.
Subekti, wearing a brown batik shirt, appeared almost relaxed
when he turned up at the court for the arraignment. He was
listening attentively as the prosecutors took turns reading the
78-page indictment. He even occasionally made notes on a piece of
paper.
As soon as the prosecutors finished, he was ready with the
paper to respond to the indictment, but Judge Soedjatman decided
to adjourn the hearing for one week to allow the defendant and
his lawyers to prepare their defense.
According to the prosecution, Subekti, as the bank's president
director and a member of board of directors, ignored standard
banking regulations and requirements in approving Tansil's credit
applications.
The credits were issued to finance the purchase of machinery
and equipment for Tansil's huge petrochemical projects in
Cilegon, West Java.
The prosecution also stated that on June 12, 1989, Tansil met
with Subekti for the first time in connection with his credit
application. Tansil was carrying a letter of reference from
Sudomo, the then minister of political affairs and security and
now the chairman of the Supreme Advisory Council.
Influence
Subekti and the other three directors earlier testified at the
trials of Tansil and Maman that the letter of reference from
Sudomo influenced their decision to extend the loans without
subjecting Tansil's application to the usual scrutiny.
The prosecution also blamed Subekti for allowing Tansil to tap
the loans before a formal credit agreement was signed.
Subekti is also charged with failing to act when he could have
cut Bapindo's losses from dealing with Tansil in June 1992. The
prosecutors said that instead he, with the other members of the
board of directors, decided to let Tansil cash in on all the
agreed loans.
Subekti and the other directors claimed that their initial
decision to cut their losses was overruled by J.B. Sumarlin, the
finance minister at that time, who was also the bank's chief
commissioner.
Sumarlin, now the chairman of the Supreme Audit Board, has
denied that he intervened in the decision. (05)