Bank Century Bailout ‘Not Graft’

The antigraft body said on Wednesday that the Bank Century bailout scandal was not a case of corruption, but the abuse of power.

Pramono Anung, a deputy speaker of the House of Representatives who presided over a closed meeting between the Corruption Eradication Commission (KPK) and the House committee that oversees the probe, said he was satisfied with the KPK’s statement because it strengthened the cases against former Bank Indonesia Deputy Governor Budi Mulya, and the central bank’s former deputy for supervision, Siti Chalimah Fadjriah.

Pramono said the investigation would widen because the bailout case constituted an abuse of power that caused the state to incur losses through the long-term loan facility policy (FPJP) and BI regulations.

“All along it appeared to be a case of graft but it’s not, because there was no corruption,” said Pramono, the Indonesian Democratic Party of Struggle (PDI-P) lawmaker who chairs the House committee on the Bank Century bailout probe.

Golkar Party committee member Bambang Soesatyo described the meeting as positive and said he was confident the KPK could solve the case.

“The KPK will soon solve it because it’s not good to let it drag on,” he said, adding that he believed the agency would not cover for influential figures involved in the case.

“For us, it’s better [to announce it] while the perpetrators are still in office. The KPK responded by saying that it’s not cherry-picking and that it was working according to the law.”

Bambang said the KPK also confirmed the involvement of several other people widely suspected of playing a role, after questioning several witnesses, including Sri Mulyani Indrawati, Indonesia’s finance minister from 2005 to 2010.

“Her information confirmed what the KPK and House committee already knew. So the perpetrators are those that attended the meetings with the BI board of governors. Basically, the findings confirmed Supreme Audit Agency [BPK] data that show there was an abuse of power in the FPJP. And the decision that Bank Century was an ailing bank had a systematic impact,” he said.

The KPK said it hoped to take Budi, a suspect in the case, to court this year.

KPK chairman Abraham Samad said a comprehensive report on the progress of the investigation was made during the meeting with the committee.

He added that they also reported on confiscations and on witnesses’ bank accounts but added that the detail on these discussions could not be revealed publicly.

Source: JakartaGlobe

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