Tansil denies misusing Bapindo funds

Tansil denies misusing Bapindo funds

JAKARTA (JP): Businessman Eddy Tansil yesterday denied that he
had misused the funds loaned to him by Bank Pembangunan Indonesia
(Bapindo) and that he was the cause for the bank losing Rp 1.3
trillion $448 million.

Tansil disclosed publicly for the first time, during a court
hearing, details of how he had used the Rp 927 billion ($436
million) loan from Bapindo to prove his point that he had been
managing the funds properly until he was arrested in February.

Tansil, the owner of the Golden Key Group, is being charged
under the anti-corruption law for swindling money from Bapindo.
The government prosecutors have alleged that Tansil siphoned the
funds for his private needs and also to finance projects other
than those agreed to in the loans.

At the Central Jakarta District Court yesterday, Tansil
confirmed that he transferred some of the funds to finance other
projects but denied the suggestion that some had been used for
his private needs.

He said he invested Rp 423 billion in several companies within
the Golden Key Group, Rp 246 billion in two companies as
mentioned in the loan applications, and another Rp 150 billion in
properties and plots of land used by the group.

The other Rp 110 billion was used to pay the interest on the
loans. "None were allocated for personal expenses," he said.

The Bapindo loans were intended to finance two units of a huge
integrated petrochemical project but some of the funds, according
to Tansil, were used to finance other units in the meantime.

He insisted that all the projects within the group would have
succeeded if he was not arrested. "And I am sure I could pay back
the money I owe, since the credits were not due until the year
2000," he said.

He pointed out that up to the time he was arrested, he never
received any formal warning from Bapindo regarding the loans.

Tansil was cross-examined by his lawyers, the prosecutors and
the judges. The hearing was adjourned until Thursday next week
when the prosecutors are scheduled to read their closing
arguments.

Tansil explained yesterday that Bapindo's directors were aware
and approved of his actions to use what he called "idle money".

This was proven when they allowed him to convert letters of
credit, intended for payments for equipment purchased from South
Korean and Chinese suppliers, from usance to red letters and
therefore allowing him to use the money for other purposes until
the equipment arrived. The bank also changed the beneficiary of
the letters of credit to Golden Step Development, which is an
affiliate of the Golden Key Group.

Tansil said he did not see any wrongdoing had been committed
since the funds were used to finance the other units of the
petrochemical project.

The bank's directors were not only aware of his actions, they
even decided, as late as November 1993, to sign an agreement to
furnish him with more loans, Tansil said.

Responding to why the properties and plots of land he bought
with the bank's money were registered with his or his wife's
name, Tansil said that he did that for administrative reasons.

"It would be more difficult to obtain official documents for
them if they were registered under the companies' names," he
said.

Tansil is one of three men now being tried in connection with
the Bapindo loan scandal.

Maman Suparman, formerly deputy manager of the bank's Jakarta
branch, faces sentencing at the South Jakarta District Court next
Thursday for his alleged role in facilitating Tansil to gain
access to huge funds.

Towil Heryoto, a former Bapindo director, began his trial in
the same court on Monday.

Three other former Bapindo directors are under investigation
at the Attorney General's office and their dossiers are expected
to be turned into the court soon. They are Subekti Ismaun,
Sjahrizal and Bambang Kuntjoro. (05)