Minggu, 02 November 2008

GOVT FAILS TO SAFEGUARD INDOVER BANK

By Andi Abdussalam

Jakarta, Nov 2 (ANTARA) - The Indonesische Overseeze Bank (Invover Bank), a Netherlands-based subsidiary of Bank Indonesia (BI/central bank) is facing liquidation after the Indonesian government failed to meet the October 31 deadline set by the Dutch central bank for a fresh fund injection.

         The Indonesian central bank's senior deputy governor, Miranda S Goeltom, said in a press conference over the weekend that BI could not inject fresh funds into the BI subsidiary because no official approval was received from the House of Representatives (DPR) until the end of the deadline.

         Indover Bank had been frozen by a court of law in the Netherlands on October 7, 2008, after the bank failed to meet its  obligations worth US$92 million.

         Goeltom said that the House Commission XI in charge of financial affairs had only stated that it had no objection to BI bailing out the bank but no decision on the matter was made in a House plenary meeting.

         The Indonesian government had previously sought a 546 million euro  bailout   for the ailing Indover Bank. After  a two-hour closed-door meeting with BI Governor Boediono and Finance Minister Sri Mulyani early this week, the House of Representatives agreed to a 546 million euro bailout or about RP7 trillion to rescue Indover Bank.

         However, BI could not provide a fund infusion without a written approval from the DPR.

         "Bank Indonesia could not put additional capital into Indover Bank because it had received no approval from the DPR until October 30," Goeltom said.

         Legislator Dradjad H. Wibowo of the House's commission XI said previously a fresh capital injection required written approval from the House.

         For  the failure to secure a written approval from the DPR, Bank Indonesia decided not to inject funds into Indover Bank to bail it out from bankruptcy.

         Besides facing liquidation, the ailing bank is also facing auditing for alleged misappropriation. Calls for investigation into possible irregularities with the banks have also been raised since recently.

         On Sunday, economic observer Ichsanuddin Noorsy said that the Corruption Eradication Commission (KPK) had to investigate the bank although BI had decided to stop its efforts to bail it out.

         "If an attempt is made by the KPK to investigate it for a fraud suspicion reason it would prove that the current United Indonesia Cabinet ministers are cleaner than those of the previous governments," Ichsanuddin Noorsy, said.

         A legislator of the Democrat Party, Vera Febyanti, suspected that irregularities had caused a problem to the bank, calling for an investigation of Indover for an alleged financial scam that had brought it to the bankruptcy.

         "Indover must be investigated because many irregularities and instances of embezzlement with legal implications have happened in its operations. Criminal acts have been committed," Very Febyanti said on the sidelines of a working meeting of the House of Representatives (DPR), BI and the government.

         In response to the calls for investigation into the case, Goeltom said BI was ready to be audited in connection with the case. "We are ready to be audited, be it an ordinary audit or an investigation by independent auditors, including BPK," she said.

         Bank Indonesia Governor Boediono agreed that an investigation on Indover Bank should be conducted to uncover financial irregularities in the bank.

         "We do agree with the investigation. A probe needs to be conducted," Boediono said after the closed-door meeting with Commission XI of the House of Representatives (DPR) at Parliament Building.

         "The details of the investigation can be determined later on," he added.

          Meanwhile, about the funds of some Indonesian banks that had been put in Indover Bank, Miranda Goeltom said that it would be settled. It is predicted the amount of the funds reached millions of US dollars.

         A curator appointed by Bank Indonesia is currently handling the settlement of Indover bank problems and in carrying out its task fully adhering to the rules the Netherlands.

         "For the settlement of the bank, BI is now cooperating with a curator appointed by the Dutch central bank," Goeltom said.

         Miranda Goeltom said that BI would take responsibility for the losses suffered by banks exposed to Indover.

         Local banks such as Bank Mandiri, Bank Rakyat Indonsia and Bank Lippo have recently announced their Indover landing exposure worth to be in excess of US$50 million, according to a report by the Jakarta Post.

         Bank Negara Indonesia (BNI) president director Gotot M. Suwondo and Bank Rakyat president director Sofyan Basyir said they regretted Indover's liquidation but could do nothing about it.

         "We regret the decision. But we have to accept it," Sofyan said.

         Gatot said BNI would add to its reserves as it braces for the impact of the Indover fallout, adding BNI's expose to Indover was relatively small.

         BI deputy governor Mulyaman D Hadad meanwhile said he would set up a team to study the impact of Indover's bankruptcy both on financial affairs and on banks.

 (T.A014/A/HNG/A/S012)  02-11-2008 23:08:55

Tidak ada komentar:

Posting Komentar