Two Bank Exim executives arrest

JAKARTA (JP): Police officially charged two executives of state-owned Bank Exim yesterday for allegedly falsifying bank records and taking bribes.

National Police spokesman Brig. Gen. Da'i Bachtiar identified the two yesterday as SA and HS.

"We charged the two for violating Article 49 of the 1992 Banking Law on falsification of company books and bribery," he said.

The article stipulates a maximum of 15 years in jail and a Rp 10 billion fine if the suspects are proven guilty of falsifying records and a maximum of six years in jail and a Rp 6 billion fine if proven guilty of receiving a bribe.

Da'i said both SA and HS had been interrogated yesterday and Tuesday.

He refused to disclose the suspects' positions at the bank or details of the questioning.

Da'i also refused to say whether the arrests were made in connection with Bank Exim's large losses in foreign exchange trade.

Bank Exim president Kodradi recently admitted in an interview with Gatra magazine that the bank had sustained heavy losses over a foreign exchange deal to sell US$2.2 billion at an exchange rate of Rp 2,725. The rupiah is now trading at about 10,000 against the dollar.

But Kodradi said the loss was due to a force majeure and that it was not the result of mismanagement or manipulation.

According to Da'i, other executives and employees of the bank would be required to provide statements concerning the case.

He rejected speculation that Kodradi had also been questioned in connection with the case.

"No. Not him. Not yet," said the spokesman. Several reporters said they met Kodradi on Tuesday at the Directorate of Police Detectives where SA and HS were questioned.

Da'i said the team had not questioned any other employees of the bank.

"But we'll soon question other witnesses," he said. (cst)