VP admits family firm debtor at Bank Mandiri
VP admits family firm debtor at Bank Mandiri
Rendi A. Witular and Eva C. Komandjaja, The Jakarta Post, Jakarta
Vice President Jusuf Kalla acknowledged that a cement company
owned by his nephew, PT Semen Bosowa, was a debtor at giant Bank
Mandiri, but insisted the company would have no problem servicing
its loan.
"I do not have a direct relation with Bosowa although it is
owned by my nephew. I have seen the (company's) 2003 (financial)
figures ... there is no problem," he said on Friday.
He said the debt fell under the level 2 category (special
mention), meaning the company had no serious difficulties in
servicing the loan.
A level 5 loan is categorized as bad debt.
There is an ongoing investigation into an alleged lending
scandal at state Bank Mandiri. The Attorney General's Office is
currently focusing its probe on loans given to five companies,
but prosecutors have said they will expand the investigation to
look at more than Rp 12 trillion worth of loans channeled to 28
companies. A source said Bosowa was included among these 28
companies.
The Attorney General's Office opened an investigation after
the Supreme Audit Agency released the results of its 2004 audit
of Bank Mandiri. Prosecutors say they are investigating alleged
irregularities in lending practices at the bank.
The Attorney General's Office has summoned top Bank Mandiri
officials for questioning, including president ECW Neloe, but has
not named any of these officials as suspects in the case.
Prosecutors have named four suspects, all top officials at
companies that received loans from Bank Mandiri.
The case has been headline news for days, with some of the
companies targeted by Attorney General's Office linked to high-
profile figures, including top government officials and
businesspeople.
Kalla said the government would not protect anyone guilty of
breaching banking regulations.
Asked about the possibility of a management reshuffle at Bank
Mandiri during the annual shareholders meeting on May 16, Kalla
said reshuffles at state enterprises had to be based on
performance reviews conducted by a joint team that included the
President, the Vice President and three related ministers.
"Reshuffles are not based on likes or dislikes," he said.
On Friday, the Attorney General's Office summoned Bank Mandiri
vice president I Wayan Pugeg and Hasyim Sumiana, a director at TV
broadcaster PT Lativi Media Karya, one of the five companies at
the center of the Mandiri probe. Prosecutors said the two were
questioned as witnesses.
However, reports say the Attorney General's Office will name
more suspects in the case next week.