Sumarlin rebuts Bapindo charges `defamation'

Sumarlin rebuts Bapindo charges `defamation'

JAKARTA (JP): Former finance minister J.B. Sumarlin calls the
allegation that he influenced Bank Pembangunan Indonesia
(Bapindo) in its lending policies "vicious defamation" against
him and the late Oskar Suryaatmadja, the former director general
of monetary affairs.

Sumarlin appeared in court yesterday to testify at the trial
of Sjahrizal, a former Bapindo director who is being held
responsible, along with three other former directors, for
allowing the Rp 1.3 trillion ($620 million) debacle to occur at
the state bank.

Sjahrizal has said that Sumarlin and Oskar specifically
ordered the bank directors on June 2, 1992, to continue lending
to businessman Eddy Tansil, despite the serious risk involved.

The allegation is "vicious defamation and an evil conspiracy
concocted by a group of former Bapindo directors in order to
protect themselves," Sumarlin told the Central Jakarta District
Court yesterday.

Sumarlin, now the chairman of the Supreme Audit Board, pointed
out that he was in Jayapura, Irian Jaya, on June 2, 1992, and
that Oskar was heading the Indonesian delegation to Washington to
negotiate for new financial assistance with the World Bank.

Sjahrizal has suggested that he was summoned on June 2, 1992,
by both Sumarlin and Oskar and that both men overruled the
decision by the Bapindo board of directors to cut their losses,
then still standing at $208 million, in their dealings with
Tansil. Both men, who were commissioners of the government-owned
bank, ordered that Bapindo lend the full $476 million pledged to
Tansil, according to Sjahrizal.

These alleged pressures are the main defense used by Sjahrizal
and his colleagues -- Towil Heryoto, Subekti Ismaun and Bambang
Kuntjoro -- who are now on trial, all charged under the 1970
anti-corruption law.

Sumarlin supplied the court with documents to show that he
left for Jayapura in Irian Jaya on June 2 to take part in an
election campaign for Golkar, the ruling political organization,
and did not return until June 5.

Two crew members of Pelita Air Service and two journalists who
accompanied Sumarlin in the trip have already testified in court
to support Sumarlin's claim.

The former minister took particular offense at the attempt by
the Bapindo directors to lay the blame not only on him, but also
on Oskar, who died in July last year after retiring from public
office.

"The late Oskar was in Washington D.C. from May 27 to June 11,
1992 on an official mission," he said.

He pointed out that Towil Heryoto was on that mission, as
were a number of other executives from government banks, who all
stayed at the Embassy Row Hotel in Washington.

"Towil Heryoto stayed in room 207 and Oskar Suryaatmadja was
in room 202. They were practically across from each other,"
Sumarlin said. "All this time, these former Bapindo directors
remained tightlipped about this in order to strengthen their
defense and shun their responsibility."

He also produced a letter written by Surinder Malik of the
World Bank testifying that Oskar was indeed in the U.S. capital
from June 1 to June 10 for negotiations at the bank's
headquarters and that Towil was a member of the Indonesian
delegation.

Sumarlin stressed that the bank's directors committed a series
of errors in their dealings with Tansil and that the decision was
theirs alone.

He recalled that he once wrote to ASEI, a state company which
insures exports, asking it to re-evaluate the feasibility of
insuring a number of petrochemical projects belonging to Tansil.

This letter, he said, was then manipulated by the directors of
Bapindo, which was financing the project, and used to pressure
the insurance company to issue a policy covering the projects.

Sumarlin also denied ever holding a meeting with Towil to
discuss Tansil's loans. (imn)

Photo -- Page 2