Two more jailed over credit scam
JAKARTA (JP): Two former directors of the state-owned Bank Pembangunan Indonesia (Bapindo) were convicted yesterday for their role in a massive loan scandal that nearly reduced the bank to bankruptcy early this year.
Judges of the Central Jakarta District Court found Sjahrizal and Bambang Kuntjoro guilty of corruption and separately sentenced each of them to six and four years imprisonment respectively.
Judge Sihol Sitompul, who presided over the trial of Sjahrizal, said the 59-year old former director, together with the other members of the Bapindo's board of directors, was guilty of allowing the bank to incur huge losses in its dealings with businessman Eddy Tansil.
The court also ordered Sjahrizal to pay Rp 30 million ($14,000) in fines.
Chief prosecutor Ridwan Moekiat had earlier pressed for an 11- year sentence.
Sitompul said in the verdict that Sjahrizal helped enrich Tansil, the owner of the Golden Key Group to whom the credits were extended.
He said Sjahrizal, in his dealing with Tansil, violated a number of banking principles and standard procedures, allowing Tansil to cash in on huge loans.
Sjahrizal, according to the verdict, failed to exercise the caution required of a bank director in approving the loans without requiring Tansil to sign a loan contract agreement.
Tansil was sentenced to 17 years imprisonment by the Central Jakarta District Court last August in connection with the huge loan scam. However, the jail term was raised by the Jakarta High Court last week to 20 years imprisonment. Tansil was also ordered to pay Rp 500 million in restitution and a fine of Rp 30 million.
Meanwhile Judge Partoso, who presided over a separate trial for Bambang Kuntjoro, 53, said Bambang, as a member of Bapindo board of directors, should be held accountable for the huge losses.
The verdict was lighter than the nine years imprisonment requested by chief prosecutor S.T. Silangit.
The judge ordered Bambang to pay Rp 15 million ($6,800) in fines.
Bambang was also faulted for neglecting banking principles of orderliness, allowing Maman Suparman, former deputy manager of Bapindo Jakarta, to convert the letter of credits (L/C) from Usance into Red Clause without the directors' approval.
Maman has already been sentenced to nine years in prison by the South Jakarta District Court for his role in helping Tansil in the scam.
Partoso said that the Bapindo directors also neglected the principle of astuteness in approving the request of Eddy Tansil to open the Usance L/C facilities, which were used to finance Tansil's ambitious petrochemical projects.
The loans were approved without any prior sales contract, credit agreement, or proper deposit, Partoso said.
Sjahrizal and Bambang were the last two former Bapindo directors to be convicted in connection with the scandal.
One director, Towil Heryoto, earlier got eight years imprisonment and another, Subekti Ismaun, received six.
In reaching their verdicts, the judges said they took account of the sentences already passed for Towil and Subekti.
Partoso said Bambang had the smallest role in the decisions to approve the loans for Tansil.
Sitompul was also of the opinion that any sentence meted out to Sjahrizal could not exceed that of Subekti given that the latter had presided over the board of directors most of the time when the scandal occurred.
Both Sjahrizal and Bambang immediately said they would appeal against the court's decisions. Chief prosecutor Ridwan Moekiat also asked for an appeal, while chief prosecutor Silangit asked the court for a week's interval to discuss the verdict with his team. (imn)