Sjahril may face four-year jail term over Bank Bali scandal

Sjahril may face four-year jail term over Bank Bali scandal

Muninggar Sri Saraswati, The Jakarta Post, Jakarta

Central Bank Governor Sjahril Sabirin is facing a possible
four year imprisonment for allegedly being involved in corruption
linked to the Bank Bali scandal, which led to government losses
of some Rp 904 billion (US$96.2 million).

Sjahril was also ordered to pay a Rp 30 million fine.

Prosecutor Y.W. Mere told the trial at Central Jakarta
District Court on Wednesday that Sjahril had abused his authority
as the governor of the central bank in approving the loans of the
Indonesian Bank Restructuring Agency (IBRA) to Bank Bali.

Bank Bali had asked for the money as payment for its loan to
Bank BDNI, the now-defunct private bank, which was unable to
repay its debts when it was taken over by IBRA.

"The central bank's approval was bizarre, considering that in
a meeting at Mulia Hotel on February 11, 1999, it consistently
rejected Bank Bali's request for the fund," Mere said, before the
hearing, presided by judge Subardi.

According to Mere, Sjahril attended the meeting, which was
aimed at approving Bank Bali's request for the loans, together
with former Bank Bali director Rudy Ramli, former minister of
investment and state enterprises and development Tanri Abeng,
businessmen Setya Novanto, Firman Soetjahja and Irvan Gunardwi,
as well as former chairman of the Supreme Advisory Council A.A.
Baramuli.

The meeting was organized by Djoko S. Tjandra, a director to
factoring firm PT Era Giat Prima, which later received some Rp
546 billion from Bank Bali as commission for helping secure the
repayment.

Djoko and former IBRA deputy chairman Pande Nasorahona Lubis
were tried at Central Jakarta District Court last year but the
court acquitted them of all charges related to the Bank Bali
scandal.

After the meeting, Mere said, Sjahril approved a verification
letter stating that Bank Bali deserved to get the loan although
he had received several reports mentioning that Bank Bali's
request could not be approved as it did not meet the necessary
requirements.

"The defendant has committed corruption...by illegally
enriching other parties," Mere said.

According to Mere, Sjahril's action as the central bank
governor had ruined the public's trust in the country's financial
institutions during the current economic crisis.

Sjahril was charged for violating Article 1 Paragraph 1 of
Anticorruption Law No.3/1971.

The court will resume on Nov. 14 to hear Sjahril's defense.

After the trial, Sjahril who looked calm during the hearing,
claimed that he was shocked with the sentence.

"I did not expect such a sentence, though I realized that it
would be impossible for me to be free of the charges," he told
reporters, adding that he suspected there was a political reason
for his trial.

Sjahril had been detained at the Attorney General's Office on
June 21, 2000 and only released some five months later. He
refused to resign claiming that he could still carry out his
duties as the governor of the central bank, despite the charge
against him.