KPK TO BEGIN QUESTIONING WITNESSES OVER CENTURY CASE

By Andi Abdussalam

Jakarta, Nov 28 (ANTARA) - The Corruption Eradication Commission (KPK) will soon begin questioning witnesses in the Rp6.7 trillion Bank Century scandal but has not provided any names of persons it intends to summon. KPK Chairman Abraham Samad said on Tuesday his commission will independently investigate the Bank Century case through carefully observed legal process and will base the case purely on legal facts.          However, the anti-graft agency chief did not provide the names of those who will be summoned and questioned as witnesses. The summoning of witnesses will be carried out after the commission completes its questioning of those involved in the alleged corruption case in the procurement of traffic-police driving simulators on Monday.         "We should not speculate on the Bank Century case because we have not yet examined the witnesses and suspects. So let us hope that after the examination of the driving simulators' case on Monday, we can begin questioning witnesses in the Bank Century case," Abraham Samad stated on Tuesday.

REFUND OF ANTABOGA'S FICTITIOUS SECURITIES REMAINS UNCLEAR

By Andi Abdussalam

Jakarta, Nov 26 (ANTARA) - After the Supreme Court issued a ruling on Friday, prohibiting Bank Mutiara from giving refund to its customers, it is uncertain as to whether investors who put money into PT Antaboga Delta Sekuritas will ever be compensated.        "As per the verdict passed by the Supreme Court, Bank Century (Bank Mutiara) does not have to pay Wahyudi Prasetio, an Antaboga investor in Surabaya, East Java, who invested Rp66  billion in Antaboga's fictitious securities," said Mahendradatta, Bank Mutiara's lawyer, on Monday.        In its previous ruling on another case concerning Antaboga's investors, the Supreme Court, in its verdict on April 19, 2012, had ordered Bank Century (Bank Mutiara) to give a refund amounting to Rp35.437 billion to 27 former Antaboga's investors in Solo, Central Java.         Bank Mutiara's lawyer, Mahendradatta, has urged Antaboga's investors to respect the Supreme Court's (MA) decision, prohibiting the bank from giving a refund to Antaboga's investors.         Mahendradatta said that Wahyudi's case is similar to the cases of 27 investors in Solo. Hence, the previous MA decision for the 27 investors in Solo should be automatically cancelled, in view of the latest MA decision on Friday, November 23, 2012.

FORMER KPK CHIEF'S TESTIMONY COULD PROVE TO BE EMPTY BLOW

by Andi Abdussalam

Jakarta, Aug 13 (ANTARA) - The allegations made by Antasari Azhar, the former head of the Corruption Eradication Commission (KPK), about the state palace's role in the controversial Rp6.7 trillion bailout for Bank Century, will only serve as dummy ammunition if he does not provide concrete evidence to back up his claims.         "This testimony is not enough if he doesn't have concrete evidence such as a recording of the discussion that took place during that meeting. He has to have concrete evidence," Burhanuddin Muhtadi, a political observer at the Indonesian Survey Institute (LSI) said.          The former chief of the anti-graft agency, who is currently serving a jail term for murder, had said earlier that as KPK chief he was invited by President Susilo Bambang Yudhoyono to the state palace to discuss the controversial bailout, which was allegedly aimed at setting aside state funds for financing political campaigns before the 2009 elections.          However, Muhtadi reiterated that Azhar's testimony, which was recently broadcast by a private television station, will not have a huge impact because his testimony is verbal and lacking any tangible evidence.          "The public is of course looking forward to hearing more from Azhar, but if he makes a similar statement again without evidence, it will be the equivalent of an empty blow," he said.          The initial claims made by the former chief of KPK were trumpeted by outspoken lawmaker Bambang Soesatyo Bambang, who said that Azhar would unveil 'new facts' about Bank Century's bailout scandal. At the time, Azhar not only confirmed the palace's involvement in the rescuing the ailing bank, but also spoke about attempts to keep the facts of the case hidden from the general public.          "With these new facts revealed by Antasari Azhar, the palace's claim that it was unaware of the bank bailout taking place has been proved false," Bambang, who is also a member of the supervising team investigating the circumstances of the Bank Century bailout, said.          He added that Azhar's testimony has also confirmed that it was President Susilo Bambang Yudhoyono who sought to cover up the facts of the case.          However, the ruling Democratic Party (PD) sees Azhar's testimony and Bambang's response as an attempt to renew interest in the controversial Bank Century bailout scandal.          Syarief Hasan, a member of the Democratic Party's advisory board, termed the effort to reopen a discussion on the specifics of the Bank Century bailout case as a wasteful exercise.          The case is already being pursued via legal channels by the anti-graft agency, Hasan said.          He added that several members of the Golkar Party have tried to refocus the spotlight on the case, in order to embarrass President Yudhoyono, but the political maneuver is unlikely to affect his image.          "This attempt by Golkar Party cadres, which include Bambang Soesatyo is a waste of energy," Hasan said. The Indonesian people are also tired of hearing this baseless allegation, he added.          The case dates back to late 2008 when a financially crunched Bank Century started facing liquidity and default problems. It collapsed after liquidity assets worth Rp11.6 trillion were withdrawn, through its security firm Antaboga Delta Sekuritas, and allegedly stashed abroad by its owner Robert Tantular.          The ailing bank was then taken over by the Deposit Insurance Agency (LPS). It was later bailed out by the government with an alleged Rp6.7 trillion issued through a short-term funding facility (FPJP) and temporary capital participation (PMS).          This amount was much higher than the Rp1.3 trillion discussed with the House of Representatives (DPR), sparking public criticism and questions about the disbursement of public funds without the DPR's approval.          In its 2009 audit report, the State Audit Board (BPK) said it suspected that efforts had been made to engineer additional bailout funds (PMS) for the bank.          While handing over his October 2009 report to the DPR, BPK chairman Hadi Poernomo said that he too has encountered gross violations in the way the Bank Century bailout was handled. The violations particularly related to the bank's merger process and its supervision by the country's central bank -- Bank Indonesia (BI).          He said these violations also include naming Bank Century as a failed bank that would negatively impact the country's banking system, the use of FPJP funds and interim capital or bailout funds, as well as overlooking the bank management's flawed business practices.          The investigative audit report also hints at the suspicious efforts made to raise the original bailout amount, which was initially estimated at between Rp632 billion and Rp1.3 trillion, but was later raised to Rp6.7 trillion without consulting the DPR.          "The Rp6.7 trillion bailout funds were disbursed in four stages. The disbursement of the second phase worth Rp2.2 trillion was done without consulting the Coordination Committee (KK), which is against the LPS regulation No. 3/PLPS/2008," Poernomo said after handing over the audit report to House Speaker Marzuki Alie.          After all, the Rp5.86 trillion loss suffered by Bank Century was a result of the bank's unethical business practices and violations committed by the bank's executives and other parties, he added.          A House Inquiry Committee confirmed later that violations had been committed during the issuance of the FPJP and PMS amounting to the Rp6.7 trillion.          The House of Representatives (DPR), in a plenary meeting in April 2010, transferred the case to the government for its investigation while the House formed a team to monitor the progress of the investigation.          Yet, no decision has been made so far with regard to the investigation by the government.          Bambang also quoted from Azhar's testimony, which alleges that in addition to the former KPK chief, a number of cabinet ministers and other high ranking state officials were present at the meeting in the state palace, which was called to discuss the scandal.         Andi Arief, a member of the President's special staff denied on Friday the statement made by Azhar on a private television channel. He categorically denied that President Yudhoyono had chaired a meeting to discuss the disbursement of Rp6.7 trillion for a bailout in October 2008.         Arief said that the president invited the KPK, police chief and the attorney general for a meeting on October 9, 2008 to discuss legal enforcement measures needed to safeguard the economy, particularly against economic players who had been violating capital market regulations.          Meanwhile, President Yudhoyono said Friday that the bailout of Bank Century in 2008, which is now known as Bank Mutiara, was carried out at a political cost in order to save the country's economy.          "If the government had not moved to quickly salvage the unhealthy bank in 2008, the economic crisis from 10 years ago might have hit Indonesia again," Yudhoyono said.          Nonetheless, the government has paid a high political cost for disbursing Rp6.7 trillion or US $730.08 million to bail out the troubled bank.          "The bailout has proved to be so expensive that the government has had to deal with the problem for the last one year," the president said.           However the president said the decision to bail out the bank was taken when he was abroad. It was the Financial System Stability Committee (KSSK) chief (then finance minister Sri Mulyani), who had the authority to decide the policy.       Presidential Spokesman Julian Aldrian Pasha the policy to bail out the bank was taken by the central bank (Bank Indonesia) and the KSSK.          Muhtadi pointed out that Azhar's recent testimony can also be used by other political parties to bargain with the President Yudhoyono, adding that House members have always used Bank Century for political gain against the government.          He added that the information revealed by Azhar¿s testimony can also be followed up by the KPK.          "The KPK has the moral responsibility to investigate the testimony and seek further explanations from Azhar, including the names of other people involved," Muhtadi said. ***1*** (T.A014/INE/KR-BSR/A/A014) 13-08-2012 20:0

GRAFT AGENCY URGED TO RE-INVESTIGATE CENTURY CASE

By Andi Abdussalam

Jakarta, Feb 3 (ANTARA) - The Corruption Eradication Commission (KPK) is once again being urged  to re-investigate the Bank Century Case,  more than three years  after the then-ailing bank received a suspicious government bailout of Rp6.7 trillion in late 2008.          "The KPK must be responsive so that the legal process in this scandal will not lead to a protracted controversy," Bambang Susatyo, a member of the House of Representatives (DPR)'s Bank Century Case Monitoring Team, said Thursday.          He added that the KPK could no longer delay re-investigating the Bank Century case after the State Audit Agency's (BPK) findings that the bank's bailout had caused a financial loss to the state.          In a meeting with the BPK on Wednesday, the House's Bank Century Case Monitoring Team determined that the Bank Century bailout had resulted in a financial loss to the state.          The conclusion was a great stride forward in the efforts to resolve the Bank Century case because it provided the basis for the law enforcement agencies, the KPK in particular, to immediately reopen their investigation, he said.          The scandal began when Bank Century faced a financial problem during the financial crisis in 2008. At that time, the government decided to bail out the bank, citing its possible system-wide effect as itsreason.          In late 2008, Bank Century faced  liquidity and default problems. It later collapsed after its liquid assets of about Rp11.6 trillion were withdrawn through its security firm, Antaboga Delta Sekuritas, and deposited abroad by its owner, Robert Tantular.          The ailing bank was then taken over by the Deposit Insurance Agency (LPS). The government later provided it with a bailout of Rp6.7 trillion through the issuance of  a Short-Term Funding Facility (FPJP) and  Temporary Capital Participation (PMS).          However, the State Audit Board (BPK), in a report, said it suspected there had been an effort to engineer additional bailout funds (PMS) for the bank.          Still later, a House Inquiry Committee confirmed that violations had been committed during the issuance of the FPJP and PMS amounting to the Rp6.7 trillion.          The House of Representatives (DPR), in a plenary meeting in April 2010, transferred the case to the government for its investigation while the House formed a team to monitor the progress of the investigation.          Yet, up to now no final solution had been reached on the bank scandal. With the latest findings by the BPK, monitoring team member Bambang Susatyo urged the KPK to  again investigate it.          "So, with the BPK having confirmed that there were indications of the state having suffered a financial loss from the Bank Century bailout, there is no more reason for the KPK to delay re-investigating the case," Bambang said.          Therefore, to facilitate its investigation the KPK should summon all parties involved in the process that led to the decision to rescue Bank Century with bailout funds, including then-Bank Indonesia (BI) governor Boediono (now Vice President) and then-Finance Minister Sri Mulyani who, at the time, was chairperson of the Financial System Stabilization Committee, Bambang said.          BPK Chairman Hadi Purnomo said this week that his audit agency, in its latest investigation, uncovered two suspicious facts. "The suspicious facts were found by the BPK during its follow-up investigative auditing,"  Hadi Purnomo told a meeting with the House Monitoring Team.          Hadi said the findings concerned the flow of funds from SS and SL to PT MNP and a foreign currency exchange transaction and foreign currency transfer from HEW and SKS to Bank Century.          However, on the flow of funds from SS and SL to PT MNP, the BPK has not yet found any comprehensive link with the Bank Century case.          Further, BPK Deputy Chairman  Hasan Basri said HEW and SKS exchanged foreign currencies with Bank Century and the funds from Bank Century were then transferred to several other banks, though he did not name the banks concerned.          According to Bambang Susatyo, the suspicious findings must be investigated. "The question is whether the bailout was really intended to safeguard the national economy at that time or to salvage SS's funds, worth Rp2 trillion at Bank Century,"  he said.          The problem was that if the bank was closed down, the Rp2 trillion funds belonging to SS would be lost, based on bank regulations. SS could only get a refund of Rp2 billion.          In the meantime, KPK Spokesman Johan Budi said the anti-graft agency remains serious when handling the Bank Century case.  "We are serious in investigating the bank's scandal. We have a large team with 20 members to tackle the case," Johan Budi said.          The KPK had earlier received dossiers about Bank Century from the House's monitoring team. The dossiers, among others, contained a letter from former finance minister Sri Mulyani,  the minutes of a conversation between Sri Mulyani and Boediono before the FPJP facility was handed over, and notes about the bank scandal from experts.          "We have officially received the dossiers and hopefully we are not going to shelve the Bank Century case," KPK Chief Abraham Samad said.***1*** (A014/a/INE/a014) 03-02-2012 21:40

BANK CENTURY , SERVING AS A BULLET

By Andi Abdussalam

Jakarta, Jan 14 (ANTARA) - While the possibility of a cabinet reshuffle  has again become a hot  topic of public discussions, lawmakers are raking up  the Bank Century scandal which involved a government  bailout amounting to Rp6.7 trillion.         The Bank Century case has rarely been raised of late since it was left by the House to the government to settle in March last year. It came up to the surface as the cabinet reshuffle issue  is also coming up to the surface.         Presidential spokesman Julian Aldrin Pasha said this week that President Susilo Bambang Yudhoyono would definitely consider the representation of political parties in his cabinet if he would have to reshuffle it.         It is not clear whether or not the Century issue is linked to it. But now several law makers urged the government to settle the Bank Century scandal.  Prosperous Justice Party (PKS) Secretary General Anis Matta asked the government  on Friday to focus on settling the Bank Century case as mandated by the House of Representatives (DPR).          "The House members are disappointed by the government which had not adopted a firm attitude in settling the Bank Century case based on its mandate. That is why, legislators submitted a judicial review to the Constitutional Court (MK) of the law on legislator's rights to express opinions," Matta said on Friday.          An article of the law was viewed to hamper the lawmakers to play their questioning right as it needs a higher quorum for the approval of their proposal.          The request for a legal review concerned  article 184 of Law No. 27/2009 that stipulates that legislators could use their rights to express opinions if approved by three-fourth the House members.       On Wednesday, the Constitutional Court issued a ruling that ran in favor of the lawmakers' request, which asked the court to lower the minimum requirement needed for lawmakers to use the questioning right on the government over a case.          Yet, Anis Matta said that the government should not necessarily worry about the MK decision, but it should settle the Century case so that there would be no impeachment.  Matta who is also a deputy house speaker said that the Bank Century case has been transferred from the DPR to the government after the DPR took a decision in a plenary session in April 2010.          "So, the government should settle the problem fairly and completely. The House will only monitor its legal handling," he said.          However, if the government failed to solve the Century scandal, the lawmakers might go ahead to play their questioning rights. They may use their  right to express their opinion based on the law if law enforcers do not settle the Bank Century case completely.          "I would like to remind (the government) that if in the coming few months the law enforcers make no progress in the Bank Century case, the DPR, I am afraid, will use its right to express opinions," Deputy House Speaker Priyo Budi Santoso said.          The use of the DPR right to express an opinion could actually lead to the impeachment of the president.          The DPR itself has set up a monitoring team to monitor the legal process of the Bank Century scandal.          Prio said that the DPR's Monitoring Team felt that the three law enforcing agencies had not yet handled the Bank Century case maximally.          The three law enforcers are the police, the Corruption Eradication Commission (KPK) and the prosecutor's office.  So far, the DPR had left the case to the government to be investigated or settled based on the law. He said that he was reminding legal enforcers to carry out their task as well as possible.           Priyo who is an associate chairman of the Golkar Party said that the investigation into the case which caused a loss of Rp6.7 trillion to the state had not yet made any progress.          Most of the DPR members have been frustrated by the way the three law enforcing agencies in handling the Bank Century case.  "I am afraid that there would be no way other than using the rights to express opinions," Priyo said.          As it was known that the plenary session of the House of Representatives had taken a decision last March regarding the results of the Bank Century Inquiry Committee.          In the plenary session, most of the DPR members chose Option C in a voting mechanism over the conclusion of the House's Inquiry Committee on the Bank Century case.           Option C, which were voted by 325 legislators of the 537 lawmakers attending the plenary, specified that the bailout of Bank Century was problematic. Option A, which was voted by 212 members, said the bailout was not problematic.           The results of the voting indicated that most of the House members were of the view that the government's policy to bailout Bank Century with a fund of Rp6.7 trillion violated the law in a number of cases.          The case begain in late 2008 when  Bank Century during the crisis faced  liquidity and default problems. It collapsed after its liquidity assets amounting to about Rp11.6 trillion were withdrawn, through its security firm Antaboga Delta Sekuritas, and stashed abroad by its owner Robert Tantular.          The ailing bank was than taken over by the Deposit Insurance Agency (LPS). The government later provided it with a bailout of Rp6.7 trillion through the issuance of  a Short-Term Funding Facility (FPJP) and  Temporary Capital Participation (PMS).         The amount provided was far higher than the Rp1.3 trillion then discussed with the House of Representatives (DPR).  Thus, the bailout sparked public criticism and questions as it was disbursed without approval of the House of Representatives (DPR).         The House of Representatives later set up an inquiry committee  to look into possible violations in the provision of the bailout.          At the end of their inquiry in at plenary session,  seven of the nine factions of the House in the committee,  mentioned that violations had been committed with regard to the issuance of the Short-Term Funding Facility (FPJP) and  Temporary Capital Participation (PMS).      (T.A014/A/HAJM/23:40/A014) (T.A014/A/A014/A/A014) 14-01-2011 23:50:4

BANK CENTURY CASE SHOULD NOT BE SOLVED PARTIALLY

By Andi Abdussalam

Jakarta, Sept 21 (ANTARA) - After several months not heard of, the Bank Century case was raised once again by at least two lawmakers on Tuesday where law enforcers were urged to summon officials involved and solve the problem comprehensively.          The lawmakers raised the issue again after President Susilo Bambang Yudhoyono on Monday ordered government officials to make efforts to recover the assets of the bank. However legislators said that the recovery of Bank Century assets was not a priority in solving the problem but its legal case.          "The asset recovery is the fourth point in the recommendation of the House Special Committee on Century," Deputy Chairman of the House Special Committee on Century Mahfud Siddiq said here on Tuesday.          He said that the settlement of the legal aspect of Bank Century case should become a priority.          "The people are waiting for the settlement of the legal case of the bank, not its asset recovery as said by President Susilo Bambang Yudhoyono," Mahfud who is also secretary general of the Prosperous Justice Party (PKS), said.           He said that the bank's assets which were stashed abroad by Robert Tantular (century's owner) had been scheduled to be recovered in two years. Mahfud is of the opinion that Yudhoyono's statement which asked for intensive efforts to return the bank's assets was an effort to cover up the legal case of Bank Century.          "One should not exaggerate the asset recovery problems that could cause the legal process of the bank to sink into oblivion," he said.          The same voice was also aired by legislator Bambang Soesatyo of the Golkar Party. While he appreciated President Susilo Bambang Yudhoyono's statement which ordered the recovery of Bank Century's assets stashed abroad, Bambang Soesatyo hoped that the problem of Bank Century should be solved once for all.          "The settlement of the Bank Century case had better be made comprehensively," Bambang Soesatyo, member of the House of Representatives (DPR)'s Monitoring Team on the Century Case, said.          He said that the case must be settled comprehensively so that his team asked the Indonesian Police to investigate all former officials involved in the case.          Bambang Soesatyo mentioned the names of former Bank Indonesia (BI/the central bank)'s governor and the former finance minister among the officials who must be summoned and examined over the alleged banking crime and money laundering with regard to the Bank Century mega scandal.          "If we are serious about settling the problem it should not be tackled partially but comprehensively and firmly," Soesatyo said. This means that there should be no reluctance to do so because it involves a big case with huge funds amounting to trillions of funds.          "That's why all law enforcing agencies should have the courage to carry out the people's mandate in creating a democratic life which is truly respectable, civilized and smart," he said.          He said that the move by the president to order the recovery of the bank's assets overseas should be coupled with the settlement of other aspects which were more crucial for upholding justice in the country.           On Monday, President Susilo Bambang Yudhoyono said the government would make more effective efforts to regain the assets of the former Bank Century. He said the government would take two-way efforts to deal with the Century Bank case namely improving the performance of the bank which has been renamed Bank Mutiara and making the efforts to return  Bank Century's assets more effectively.          "We will do it simultaneously. On the one hand we will make Bank Mutiara thrive and on the other we will regain the Century Bank assets more effectively," he said at his office in connection with the problem.           He made the statement after receiving a report about the progress in the efforts to regain the assets of the Century Bank taken away by those involved in the case.          "I think efforts must be intensified. Integrated and joint efforts to regain the Bank Century assets abroad should be taken with a hope the results would be parallel with the court's ruling," he said.          President Yudhoyono said although Bank Mutiara had recorded  good growth that was not sufficient yet and therefore the two way efforts were still needed.          The chairman of the board of commissioners of the Deposit Insurance Agency (LPS), Rudjito, said that some local and foreign investors had expressed their interest to buy  Bank Mutiara.           He said the condition of the bank is improving with its total assets reaching Rp8 trillion up from minus Rp7 trillion at the takeover.          Bank  Mutiara, formerly Bank Century, was the only bank bailed out by the LPS at the time of crisis in 2008.          In late 2008,  Bank Century during the crisis faced  liquidity and default problems. It collapsed after its liquidity assets amounting to about Rp11.6 trillion were withdrawn, through its security firm Antaboga Delta Sekuritas, and stashed abroad by its owner Robert Tantular.          The ailing bank was than taken over by the Deposit Insurance Agency (LPS). The government later provided it with a bailout of Rp6.7 trillion through the issuance of  a Short-Term Funding Facility (FPJP) and  Temporary Capital Participation (PMS).          The amount provided was far higher than the Rp1.3 trillion then discussed with the House of Representatives (DPR).  Thus, the bailout sparked public criticism and questions as it was disbursed without approval of the House of Representatives (DPR).          The House of Representatives later set up an inquiry committee  to look into possible violations in the provision of the bailout.          At the end of their inquiry in at plenary session,  seven of the nine factions of the House in the committee,  mentioned that violations had been committed with regard to the issuance of the Short-Term Funding Facility (FPJP) and  Temporary Capital Participation (PMS).***1*** (T.A014/A/HAJM/22:00/H-YH) 21-09-2010 22:07:0

PRESIDENT DEFENDS BANK CENTURY BAILOUT

By Andi Abdussalam

          Jakarta, March 1 (ANTARA) - One day before the House of Representatives (DPR) begins its two-day plenary sessions to take a decision on the final views of its factions  in the Bank Century Inquiry Committee, President Susilo Bambang Yudhoyono, when he  met with 30 bankers on Monday, spoke up  to defend the government's move to bail out ailing Bank Century in late 2008.

         The President met about 30 bankers at the Merdeka Palace for a talk about the current economic situation and for obtaining inputs about the Bank Century bailout amounting to Rp6.7 trillion.

         The meeting was held one day ahead of the DPR's plenary sessions which will make a decision regarding the inquiry committee's finding that violations were committed in the disbursement of the bailout.

         Having conducted an investigation  for about two  months, the House Inquiry Committee held a plenary last week to present its final views over the bailout.

         Of the nine factions of the House in the committee, seven  mentioned that violations had been committed with regard to the issuance of the Short-Term Funding Facility (FPJP) and  Temporary Capital Participation (PMS) amounting to Rp6.7 trillion for Bank Century.  
     Only two factions  held  the opinion  that the extension of the FPJP and PMS did not violate any regulation because it was done in accordance with the required procedures. The two factions are the factions of the ruling Democratic Party (PD) and the Nation's Awaking Party (PKB). PKB is one of the parties in PD's ruling coalition partners.

         On the flow of funds from Bank Century, all the nine factions mentioned that violations had been committed, but they differed on who committed the violations.

          Four factions mentioned the names of persons or state officials who were responsible for the violations that had been committed in the Bank Century case, these factions were of the Indonesian Democratic Party of Struggle (PDIP), the Prosperous Justice Party (PKS), the Golkar Party and the People's Conscience Party (Hanura). PKS and Golkar are partners in the ruling coalition.

         PKS and Golkar had stated that Boediono (former governor of the central bank, now Vice President) and Sri Mulyani (former chief of the Financial System Stability Committee - KSSK) as the most responsible persons in the Century bank case.

         In a meeting with bankers, however, President Yudhoyono said that  the government's decision to bail out  Bank Century in 2008 was correct in that it had saved the national economy and banks from the impact of the global financial crisis. He was ready to take responsibility for the decision to inject Rp6.7 trillion into the failed bank to prevent it from total collapse.

         "I say that what was done to save our economy and the banking sector was right. As a policy, a measure to save the economy and the banking sector, it was correct and I am responsible for it although in terms of technical operations it was done  by state officials in charge of financial affairs based on the law. Although I did not specifically issue an instruction or  directive to bail out the bank, I justified the actions taken to that effect," he said.

         In the meantime, former chief of the KSSK Sri Mulyani Indrawati, who is also the finance minister,  also defended the government's bailout of  Bank Century saying that all parties should  accept the decision because it was done to save the national economy. She said the bailout was justified based on credible reasons and prudently decided in response to the global economic crisis.

         Sri Mulyani said, from the beginning, the head of state had confirmed that the government's decision about the troubled bank was right. "What bankers have conveyed gives a kind of relief that the measures taken by the government have been able to give stability in the financial field but it was expensive," she said after a meeting with the House Budget Committee on Monday.

         Bankers during the meeting with the president stated that the government's decision to take over Bank Century in the midst of global financial crisis in 2008 was correct.

         According to President Yudhoyono, although the decision was taken while he was abroad it was actually not necessary for the state officials concerned to ask for his approval to do it as by law the finance minister and the central bank governor had the authority to do it and had to do it quickly.

         President Yudhoyono said the decision to bail out the bank was preferred above another option, namely closing the bank at the cost of around Rp6 trillion to repay  third party funds.

         "The options were closing the Century Bank and paying  Rp6 trillion or bailing it out with Rp6.7 trillion with the management being taken over, and the possibility of the funds being recovered," he said.

         In the meantime, the House Bank Century Inquiry Committee  is to present three alternative recommendations  to the House's plenary where the House  is to decide its stance on the controversial case on Tuesday.

         The  head of the committee's team tasked with formulating  the committee's conclusions and recommendations, Mahfudz Siddiq, said at a plenary meeting of the committee on Monday that "this is the best result  the team can  achieve."
      He said the three alternative recommendations are 'Alternative A' which consists of seven conclusions and six recommendations, 'Alerantive B' of 17 conclusions and six recommendations and 'Alternative C' of four conclusions and five recommendations.

           The three alternatives  were formulated  after several negotiations with a consequence of distortions on party factions' differing views particularly on the Short-term Funding Facility (FPJP) and the temporary capital participation (PMS).

           Mahfud said when the team was formed some had suggested that it  would later produce only one conclusion and one recommendation. However after discussions the idea could not be realized due to fundamental differences, he said.

    

(T.A014/A/HAJM/23:10/a014)

(T.A014/A/A014/A/A014) 01-03-2010 23:15

HOUSE LIKELY TO DECIDE CENTURY CASE THROUGH VOTES By Andi Abdussalam

By Andi Abdussalam

Jakarta, Feb 27 (ANTARA) - The House of Representatives (DPR) is expected to have to do some tough deliberations when it holds a plenary session on Tuesday and Wednesday on the conclusions of the House Inquiry Committee which has investigated the Bank Century bailout case.          Observers say that deliberations in the plenary will unlikely reach a consensus, forcing the House to decide it through a vote. Therefore, political observer Muhammad Qodari of "Indo Barometer" believed the House would decide it through the voting option.          "Having observed the substance of the final views of factions in the inquiry committee during its plenary a couple of days ago, I believe that the House will  not be able to take a decision based on the consensus mechanism," Muhammad Qodari said on Saturday.           Associate chairman of the Golkar Party Priyo Budi Santoso also predicted that the House deliberations over the final views of the factions would be tough and it would face difficulties to take a decision so that the decision to be made would be taken through a vote.          "I think the plenary that will discuss the final views of the factions will  see a lot of hard debate because each faction will  try to defend its position ,"  Priyo Budi Santoso said.           Factions which have delivered their final views on the Bank Century bailout amounting to Rp6.7 trillion will be consistent with their stance so that the voting mechanism option would be unavoidable for the House to take a decision.          After all factions delivered their final views  on the Bank Century bailout scandal on Tuesday night, the House  will next Tuesday and Wednesday in plenary discuss it. Many factions have different views so that it is predicted that during the plenary faction members would also  intensely lobby each other. The legislators might even have to resort to a vote several times.          The most interesting voting is likely on factions' views which mentioned names of persons or state officials who are thought to be responsible for the scandal.          "The voting will  be on whether to mention only the names of the chairperson of the Financial System Stability Committee (KSSK) and the Bank Indonesia governor, or  also the name of other state officials," Qodari said.          Other interesting issue that might be decided through a vote is the status of the Short-Term Funding Facility (FPJP) and Temporary Capital Participation (PMS) about which factions have differences of views.          During the House Inquiry Committee's plenary on Tuesday night which lasted until the wee hours on Wednesday, seven factions mentioned that violations had been committed with regard to the issuance of the FPJP and PMS amounting to Rp6.7 trillion for Bank Century.          Only two factions  have the opinion  that the extension of the FPJP and PMS did not violate any regulation because it had been done in accordance with the procedures. The two factions are the factions of the ruling Democratic Party (PD) and the Nation's Awaking Party (PKB). PKB is one of the parties in PD's ruling coalition partners.          On the flow of funds from Bank Century, all factions mentioned that violations had been committed, but they differed on who committed the violations.          Four factions mentioned the names of persons or state officials who were responsible for the violations that had been committed in the Bank Century case, these factions were of the Indonesian Democratic Party of Struggle (PDIP), the Prosperous Justice Party (PKS), the Golkar Party and the People's Conscience Party (Hanura). PKS and Golkar are partners in the ruling coalition.          With these different views, a number of legislators predicted that the House in its plenary next Tuesday and Wednesday would decide the different views through voting.          Prio Budi Santoso said that if the House came up with the voting option, it had to be carried out openly. The reason is that a decision is to be taken with regard to a policy not a person. So, it is just proper for the public to know it.          "With an open voting, the people could see which of their representatives are channeling their aspirations and who are not," Prio Budi Santoso who is also a deputy House Speaker said.           The same voice was also raised by Bambang Soesatyo of the Golkar Party who urged that a voting should be held openly. If it is held in a closed place, there could be many legislators who would change their  stance because of transactional practical politics. It is difficult to know who change their voices and who consistently maintain their stance.          Hendrawan Supratikno of the PDIP also predicted that it would proceed toughly as factions' views were already known to the public so that it would be difficult for factions to change their stance.          PDIP chief Megawati Soekarnoputri said there would be no change in the party's stance on the Bank Century bailout scandal as expressed by its faction in the House of Representatives.          "I will not talk a lot about the Bank Century case, PDIP's stance is already clear," she said when opening the party's Lampung provincial third regional conference here on Saturday.           The PDIP faction in the House of Representatives Inquiry Committee had concluded that its field findings constituted strong clues of banking law violations, money laundering, and corruption.          Therefore, the public is giving the greatest attention to the settlement of the Bank Century case. Factions who change stance would be under the spotlight of the people.           "The people will criticize if there are factions who change stance," Hendrawan Supratikno, who is also a member of the House Century inquiry committee, said.     (T.A014/A/HAJM/23:30/H-YH) (T.A014/A/A014/A/H-YH) 27-02-2010 23:41