Two BLBI corruptors get less than a year, one acquitted
Muninggar Sri Saraswati, The Jakarta Post, Jakarta
In another blow to the legal battle against violators of the Bank Indonesia Liquidity Fund (BLBI), the West Jakarta District Court sentenced on Thursday two former directors of the now- defunct Southeast Asia Bank to 10 months and eight months respectively.
The judges ruled that defendants Handy Sunardio and Jemy Sutjiawan were guilty of violating the Anticorruption Law and banking regulations. The pair could have faced a maximum sentence of life in jail.
Both defendants had asked the central bank in 1996 for a loan because the Southeast Asia Bank was suffering financial difficulties. Bank Indonesia approved the request on Sept. 17, 1996 to save the bank from bankruptcy, the judges said.
Handy and Jemy were also found guilty of violating banking regulations by channeling the credit to their group's companies from 1991 to 1997, despite the central bank's guarantee.
However, the judges cited mitigating factors for a lenient sentence, including the defendants had opportunities to commit the crimes; they committed the crimes to prevent bankruptcy; and the defendants showed goodwill by surrendering two parcels of land worth about Rp 40 billion (US$4.4 million), which covered losses to the state.
Chief prosecutor Godang Riadi Siregar earlier demanded Handy and Jemy be sentenced to one year and 10 months in jail respectively.
Godang earlier accused them of corruption and causing losses to the state totaling Rp 158 billion (US$16.5 million). But he later reduced that amount to only Rp 39.9 billion on the grounds that experts from the State Audit Agency (BPK) and the central bank had miscalculated the Southeast Asian Bank's account balance at the central bank.
The judges did not order the defendants to immediately start serving their sentences. Instead, they ordered Handy and Jemy to each pay Rp 500 million in fines or serve six months in jail.
The judges acquitted defendant Leo Andyanto, the former credit director for the bank, of charges of breaking banking rules on the grounds that the rules were made in 1993, but he violated them in 1991 and 1992.
The rules state that a bank should not disburse credit amounting to more than 30 percent of its capital.
The judges ruled that Leo was not actively involved with the bank in 1994.
Godang refused to comment on the matter and said that he was considering whether or not to appeal the verdict.
Many people have been outraged over legal proceedings of cases involving the misuse of Bank Indonesia liquidity funds as they consider the legal system to have failed in delivering appropriate punishment to offenders or to return funds to the state.
The central bank disbursed Rp 144.5 trillion in liquidity support to rescue 48 troubled banks. Ironically, the BPK declared that 95 percent of the support funds were misused.
So far, the state has been losing in its legal battle against BLBI violators. In March, David Nusa Wijaya of Bank Umum Servitia was sentenced to one year in jail for manipulating Bank Indonesia liquidity funds, which cost the state Rp 1.27 trillion.
The West Jakarta District Court argued that the light sentence was necessary to give David a chance to work and raise the money he promised to repay to the state. However, David is currently missing.
Last Friday, the Central Jakarta District Court acquitted Bank Modern commissioner Samadikun Hartono, who was allegedly involved in the misuse of Rp 1.7 trillion in Bank Indonesia liquidity funds.