Two more jailed over credit scam

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)