August 12, 1999 
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| August 12, 1999 | atimes.com | |
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| Southeast Asia Big names linked to Bank Bali scandal JAKARTA - The names of many prominent Indonesians, including cabinet ministers, officials of the ruling Golkar party and executives of the Indonesian Bank Restructuring Agency (IBRA), have been linked to a scandal involving Bank Bali that could have an impact on the coming presidential election. Investigation of the case has already led to the sacking of Pande Lubis, a deputy head of IBRA, and six other suspects have been banned from leaving the country, including Rudy Ramly, Bank Bali's former president, and Setya Novanto, a Golkar deputy treasurer. IBRA confirmed last week earlier allegations made by banking law expert Pradjoto that Bank Bali, which is under IBRA control, paid Rp546 billion ($78 million) to private firm PT Era Giat Prima (EGP) for recouping Rp904 billion in interbank claims on closed-down banks. IBRA admitted the repayment of interbank claims on closed-down banks did not require the services of any third party such as EGP as the claims were insured by the agency through a government blanket guarantee program. EGP is controlled Golkar deputy treasurer Novanto, raising speculation that part of the fee was illegally used to finance the party's campaigning activities or for vote-buying during June's general election. On Monday, banking analyst Thomas Suyatno said prominent officials were likely to have been involved in the scandal in view of the huge amount of Rp904 billion ($130 million) involved. ''In view of the staggering amount of state funds and the simple process, there is a big possibility of the involvement of 'influential figures','' Suyatno said. He did not mention names, but indicated that they might be top officials in the government and the central bank, Bank Indonesia. President B.J. Habibie has ordered Bank Indonesia to investigate and verify the affair. State Secretary/Justice Minister Muladi said after meeting with Habibi Tuesday that the probe could be based on either administrative law or the civil code. Bank Indonesia would determine whether in making the funds transfer standard procedures had been fulfilled, Muladi said. ''Is there also any linkage with the Finance Minister and Bank Indonesia so that the money could be paid?'' he asked. The investigation will look into ''the question of whether there have been corrupt, collusive and nepotistic practices and so forth'', he added. Other prominent people said to have had inside knowledge of the Bank Bali deal include Djoko Tjandra, owner of a star rated hotel in Jakarta and a contributor to Golkar funds; Arnold Baramuli, chairman of Supreme Advisory Council; Minister for State Enterprises Tanri Abeng; Finance Minister Bambang Subianto; Bank Indonesia Governor Syahril Sabirin; and Justice Minister Muladi himself. (Asia Pulse/Antara) | |||||||||
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