AGO set to reopen probe into BLBI funds

Lilian Budianto ,  The Jakarta Post ,  Jakarta   |  Thu, 03/06/2008 1:22 AM  |  Headlines

Attorney General Hendarman Supandji promised Wednesday to resume the investigation into the alleged embezzlement of Bank Indonesia liquidity support (BLBI) funds, pending a probe of prosecutors handling the case.

Speaking at a hearing with House of Representatives Commission III on justice and human rights, Hendarman said he would wait for the results of both the investigation of prosecutors by the Corruption Eradication Commission (KPK) and an internal investigation, which will commence Thursday.

"If the prosecutors are proven to have received bribes for the suspension of (BLBI) investigations, we will reopen the probes," he said.

Hendarman has come under pressure to reopen the investigation into BLBI cases involving businessmen Sjamsul Nursalim and Athony Salim following the arrest of prosecutor Urip Tri Gunawan and businesswoman Artalita Suryani on Sunday in a house belonging to Nursalim in South Jakarta.

Urip is accused of receiving a US$660,000 bribe from Artalita. The KPK is questioning the two about possible a link between the alleged bribery and the BLBI case.

Urip led the investigation into the case involving Nursalim. His arrest came just three days after the Attorney General's Office announced the suspension of the investigation.

During Wednesday's hearing, led by commission chairman Trimedya Panjaitan, legislators pressed the attorney general to explain the controversial decision to drop the case.

Salim and Nursalim were investigated after the Attorney General's Office detected a massive drop in the value of the assets they submitted to the state to pay off their BLBI debts, when the government sold those assets.

An independent appraisal had valued Salim's assets at Rp 52.7 trillion, but when the government sold them, the value dropped to only around Rp 19.3 trillion.

Nursalim's assets, which were valued at Rp 28.4 trillion, were sold only for Rp 4.9 trillion.

However, by the time the assets were sold and the state had suffered the losses, both businessmen had already been cleared of any criminal charges by then president Megawati Soekarnoputri.

Herdarman said the AGO faced problems proving the alleged corruption behind the decision to clear the businessmen of criminal charges.

"We felt like we were entering 'a jungle full of dark powers' when we tried to investigate any allegations of graft behind the (criminal) discharge statements," he said.

He said he believed there was corruption and abuse of power behind the decision to drop charges against the pair, and said "traps" had been deliberately set to prevent his office from looking too closely at the case.

Trimedya said the House would give the KPK two weeks to investigate the alleged bribery involving the senior state prosecutor.

Also on Wednesday, Urip was again questioned by KPK officials. The prosecutor arrived at the graft body's office at 12:40 p.m., and as of 7:30 p.m. he was still being questioned.

Lawyers grouped under Indonesia's Team to Defend Democracy arrived at the KPK building to demand the graft body take over all corruption cases currently being handled by the Attorney General's Office.

"Urip's arrest shows that the people can no longer trust the AGO to solve corruption cases because they are corrupt themselves," group spokesman R.O. Tambunan said. (anw)

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