Graft trial starts for ex-BI boss

The Jakarta Post ,  Jakarta   |  Thu, 06/26/2008 10:39 AM  |  Headlines

TRYING TIMES: Former central bank governor Burhanuddin Abdullah leaves a Jakarta court on Wednesday where he is standing trial for the alleged embezzlement of billions of rupiah. (JP/Ricky Yudhistira)

Former Bank Indonesia governor Burhanuddin Abdullah stood trial Wednesday for the alleged misappropriation of Rp 100 billion (US$10.8 million) from the central bank, pleading his innocence.

He has been charged with violating Article 2 of the 1999 law against corruption, which carries a maximum sentence of life imprisonment and Rp 1 billion in fines.

Burhanuddin told the Corruption Court the disbursement of funds had been a legitimate policy decided upon by the BI board of directors.

"The decision was a collective decision by the board and such a decision is legitimate under the law on BI," Burhanuddin said.

Corruption Eradication Commission (KPK) prosecutors said the case started in May 2003, when the then head of the BI communications bureau Rusli Simanjuntak, at the approval of Burhanuddin and deputy governor Aulia Pohan, held several meetings with members of the House of Representatives' Commission IX for financial affairs.

At the meetings they agreed on the disbursement of Rp 40 billion to support the Commission IX's work to resolve the BI liquidity assistance (BLBI) case and the amendment of the BI law, the KPK said.

Separately in June 2003, it said, Burhanuddin held a meeting with BI legal affairs director Rozwita Roza and deputy Oey Hoey Tiong to discuss a proposal for financial assistance to cover legal expenses for five former BI officials who were involved in BLBI cases.

Rusli and Oey have been named as suspects in the BI fund scandal.

Later in the month, Burhanuddin, Aulia, Oey and several other members of the BI board decided to disburse Rp 100 billion from BI's Indonesian Banking Development Foundation (YPPI) funds.

In their indictment, the KPK prosecutors said a total of Rp 68.5 billion was given to former senior BI officials, Paul Sutopo, Hendro Budiyanto, Heru Soepraptomo, Iwan Prawiranata and Soedrajat Djiwandono, who were all implicated in the BLBI corruption cases.

The remaining Rp 31.5 billion was given in installments to Commission IX members Anthony Zeidra Abidin and Hamka Yandhu. Anthony and Hamka have also been named as suspects along with Rusli and Oey.

In a 2006 report, the Supreme Audit Agency reported that more than 10 incumbent and former lawmakers allegedly received money from the BI fund.

The KPK has imposed a travel ban on 16 active and former BI officials implicated in the case who remain free, including Aulia Pohan who is the father-in-law of President Susilo Bambang Yudhoyono's son.

Other active and ex-BI officials also banned from overseas trips include Soedrajad Djiwandono, Maman H. Soemantri, Iwan R. Prawiranata, former BI chief Syahril Sabirin and former deputy governors, Taslim Tadjuddin and Bun Bunan Hutapea.

Presiding judge Teguh Heriyanto adjourned the trial until next Wednesday to hear responses from the prosecutors. (dre)

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