Sjahril named bank scandal suspect

Sjahril named bank scandal suspect

JAKARTA (JP): Bank Indonesia Governor Sjahril Sabirin was
named a suspect on Monday in the Bank Bali scandal for allegedly
violating the central bank's prudential principle in its policy
to reimburse interbank loans guaranteed by the government.

But representatives for Sjahril quickly attacked the
allegations, accusing the government of fabricating charges to
remove the central bank governor.

During a late night media briefing, BI's deputy director for
legal affairs Amir Sjarifuddin claimed that Sjahril had been
given an ultimatum to resign and be freed of any charges or risk
being named a suspect and face the legal consequences.

"The governor confided (in us) that he had several times been
given a choice, both directly by the President and the attorney
general or other parties, to either resign and be appointed an
ambassador or be named a suspect," Amir told journalists.

The news conference was not attended by Sjahril, who was said
to be tired. BI Deputy Governor Achjar Ilyas attended the
conference.

Amir charged that these "suggestions" by the President and
other parties were a direct violation of Law No. 23/1999 against
outside intervention in the central bank.

"According to our analysis, from the beginning there has been
an effort to make it appear that the BI governor violated the law
by connecting him to Bank Bali, Texmaco and other cases," he
added.

"This is more of a political move to remove the governor
rather than reveal the cases, because up to now there is no
evidence that he violated the law... The governor refuses to
resign," Amir said.

Amir also reminded the Attorney General's Office that it was
more important to focus on economic recovery, saying that this
latest development could destabilize the rupiah.

Amir also questioned the remarks by prosecutors when
announcing Sjahril's status, that among the four charges against
him was corruption.

Sjahril's status as a suspect was not unexpected as
prosecutors had previously pointed to glaring inconsistencies in
his testimony with those of other witnesses over whether or not
he attended a Feb. 11 meeting at a Jakarta hotel which allegedly
led to the reimbursement of funds from BI to Bank Bali for
defaulted loans.

The scandal revolves around BI's reimbursement of Rp 904
billion in defaulted loans to other banks. Some Rp 546 billion of
the money was then paid to PT Era Giat Prima for helping Bank
Bali recoup the money.

There is suspicion that a large portion of the money went to
help bankroll then president B.J. Habibie's renomination bid.

Attorney General's Office spokesman Yushar Yahya on Monday
said Sjahril had been named a suspect because he accelerated the
reimbursement of the money to Bank Bali, the clearance of which
some believe was conducted through questionable negotiations
between state officials and businessmen.

No travel ban has been imposed on Sjahril.

After being questioned by prosecutors for almost five hours,
Sjahril left the Attorney General's Office compound at around
8:40 p.m., accompanied by his aides. He appeared to avoid
journalists.

President Abdurrahman Wahid earlier said that all state
officials implicated in cases under investigation should resign
to facilitate the legal process.

House Speaker Akbar Tandjung has also suggested that it would
be best to suspend the BI governor so a thorough investigation
could be conducted. (bby)