Troubled banks vow to return credits

JAKARTA (JP): Owners of eight troubled banks have vowed to draw on their assets to pay back liquidity credits they received from Bank Indonesia, Deputy Attorney General Soehandjono said on Wednesday.

"From the (owners of) nine banks now being questioned (by the Attorney General's Office), eight banks have vowed to repay the credits with their assets," Soehandjono told reporters at the Attorney General's Office in South Jakarta.

Soehandjono, who heads the credit-recovery team, said the ninth, Bank Surya, was still negotiating the repayment of its credits with the Attorney General's Office.

Surya is owned by former president Soeharto's cousin Sudwikatmono. During questioning on Monday at the Attorney General's Office, he had pledged to repay the liquidity credits with his assets.

Sudwikatmono said his bank received more than Rp 1 trillion in liquidity credit from the central bank.

Attorney General Office spokesman Soehandoyo said last week that in addition to Sudwikatmono, executives from Bank Modern, Bank Umum Nasional, Hokindo Bank, Deka Bank, Bank Subentra, Bank Pelita, Centris International Bank and Bank Istismarat were also being questioned by state prosecutors over their use of the credit facility.

Attorney General Andi Muhammad Ghalib, who was also present at the media briefing on Wednesday, did not dismiss the possibility of prosecuting the bankers.

"If they cannot repay their liquidity credits or their assets are worth less than their debt, they could be prosecuted.

"But our priority right now is to save the state assets." He met earlier with National Police Chief Lt. Gen. Roesmanhadi at his office.

Andromeda

Meanwhile, Roesmanhadi denied the police had summoned liquidated Bank Andromeda commissioners and directors, including Soeharto's son Bambang Trihatmodjo, over allegations of a scam at the bank.

"We haven't issued any summons or arrest warrant against Bank Andromeda commissioners," Roesmanhadi said.

His statement contradicted that of his subordinate, Maj. Gen. Da'i Bachtiar, who said last week the police had summoned the 10 Andromeda commissioners and directors to clarify whether the bank had violated lending limits before the government closed it last November for mismanagement.

Da'i, who was seated behind Roesmanhadi at the briefing, remained silent.

Roesmanhadi denied police were reluctant to summon the commissioners because of the link to Soeharto.

"It is not because of the family of the former president, but simply because there have not been any summons or arrest warrants issued (against the commissioners). We just plan to question Bank Andromeda directors."

Also on Wednesday, timber tycoon Mohammad "Bob" Hasan, owner of suspended Bank Umum Nasional, was again questioned by the Attorney General's Office over receipt of liquidity credits.

Hasan reiterated his willingness to relinquish all of his vast business network to repay the liquidity credits, amounting to Rp 6.63 trillion.

The government recently set a Sept. 21 deadline for the banks to repay the central bank. The Indonesian Bank Restructuring Agency (IBRA) has been authorized to seize bank owners' private assets if they miss the deadline.

Minister of Justice Muladi said last week that the authorities had tightened security at the Halim Perdanakusuma Airport in East Jakarta, where some bankers keep private planes, to guard against attempts to flee abroad.

Ninety-six bankers are under investigation as the government tries to clean up the hobbled sector. (byg/emf)