Two more Bapindo directors arraigned over loan scam
Two more Bapindo directors arraigned over loan scam
JAKARTA (JP): Two more former Bapindo directors were arraigned
in court yesterday in connection with the massive loan scandal at
the government-owned bank.
Sjahrizal and Bambang Kuntjoro were formally charged with
corruption during two separate hearings at the Central Jakarta
District Court.
They were held responsible, individually or collectively, with
other members of the bank's board of directors for allowing
Bapindo to lose US$448 million in its dealings with businessman
Eddy Tansil.
The government prosecutors said the defendants had improperly
used their positions in the bank to allow Tansil to cash in on
his loans in violation of standard banking procedures.
Sjahrizal, 59, and Bambang, 53, were members of the Bapindo
board of directors when the loans in question were extended
between 1989 and 1993. Two other board members, Towil Heryoto and
Subekti Ismaun, are currently being tried at the South Jakarta
District Court.
A fifth former director, Adi Sugondho, has not been charged
apparently because he not as extensively involved as the other
four.
Tansil, owner of the Golden Key Group, was sentenced last week
to 17 years of imprisonment and ordered to pay Rp 500 billion in
restitution and Rp 30 million in fines. He is appealing against
the verdict to the Jakarta High Court. Maman Suparman, a former
deputy manager of Bapindo's Jakarta branch was sentenced to nine
years imprisonment for his role in the scam.
The government prosecutors said yesterday that the loan
scandal affected the performance of the Indonesian economy. This
justified their decision to pursue the case under the 1971 anti-
corruption law.
Prominent role
Both men, in their capacity as the bank's directors, played a
prominent role in approving the loans and later in changing the
terms of the loans which permitted Tansil to personally cash in
on the money -- instead of his foreign suppliers as intended in
the original loan application.
Ridwan Moekiat, the chief prosecutor in Sjahrizal's trial,
said the directors even disbursed the loans before Tansil signed
the credit agreements and opened the deposit accounts as
required.
S.T. Silangit is the chief prosecutor in Bambang's trial.
Judges Sihol Sitompul and Partoso are presiding the trials of
Sjahrizal and Bambang respectively.
In the meantime, Sjahrizal and Bambang have retained the
services of Harjono Tjitrosoebono and Hotma Sitompoel
respectively, considered to be the country's leading lawyers.
They will have their chance to read their defense statements on
Monday. (02)