Top bosses at Bank DKI to get walking papers

JAKARTA (JP): Governor Sutiyoso said on Thursday he would soon replace three top officials of city-owned Bank DKI due to their alleged mismanagement which saddled the bank with Rp 172 billion in bad credit.

Sutiyoso said the three to be replaced would be bank president Soeharto, director of general affairs Djunaidy Albaghdady and director of marketing Bassar Soetardjo, who is also in charge of channeling loans.

The governor said the replacements were being taken in line with the city administration's plan to investigate their alleged roles thoroughly.

"We will bring them (the top executives) to court if they are found guilty," he said, refusing to give details about their successors.

"I actually wanted to replace them some time ago but, as you know, the replacement process is not easy as we first have to carefully examine their credentials before requiring approval from Bank Indonesia," he said.

Bank DKI has been under scrutiny ever since the extent of its bad loans was uncovered mid last month.

It was believed that the bad loans were mainly caused by the bank president's alleged authoritarian management style, especially in the process of granting loans, and his reported disregard of a company's accountability or credibility.

Moreover, Soeharto also reportedly granted loans to certain parties without any acknowledgement of the board of supervisors, which is chaired by Sutiyoso.

This year alone, Soeharto granted credit worth Rp 50 billion to PT Jaya Real Properti for the construction of a housing complex supposedly without considering the possibility of the company failing to repay the debt due to the economic crisis.

The bank also granted Rp 800 million in credit to the National Family Planning Board with Rp 200 million in collateral in the form of land. Collateral should equal 150 percent of a loan.

Other examples are Rp 5.5 billion granted to PT Multan Pandira for the construction of an office building, Rp 3 billion to the Al Falah foundation and Rp 1 billion to PT Wiros.

Bank DKI's image has also been damaged by the fraudulent purchase of 124.8 hectares of land in Bogor for the construction of a housing complex for the administration's employees.

The case also involves city-owned property developer PD Pembangunan Sarana Jaya (PSJ) officials who reportedly played roles in purchasing the land from PT Multan Ekadharma.

On Tuesday, Jakarta Prosecutor's Office chief Syahmardan Lubis said he would summon Soeharto and other officials from PSJ for questioning.

Bank DKI was established in 1961 and has 11 branches throughout the city. (ind)