Two Bank Exim executives arrest

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)