2.8t of Century bailout illegal: BPK

The Jakarta Post ,  Jakarta   |  Mon, 11/23/2009 2:14 PM  |  Business

The Supreme Audit Agency (BPK) announced Monday that of the bailout disbursed to Bank Century totalling Rp 6.7 trillion (US$710.2), Rp 2.89 trillion was illegal.

BPK Chairman Hadi Purnomo said that the Rp 2.89 trillion of Century bailout had been disbursed after Dec. 18, 2008, when the House of Representatives' plenary meeting rejected the regulation-in-lieu of law (Perppu) No.4/2008.

Perppu No.4/2008 was issued by President Susilo Bambang Yudhoyono on Oct. 15, 2008, legalizing the bailout to the troubled bank.

The Perrpu had been rejected by legislators and had no more legal power since Dec. 18, 2008, Hadi said.

According to the BPK, there were three bailout disbursements after the date, amounting Rp 1.1 trillion, Rp 1.16 trillion, and Rp 630.22 billion.

The BPK indicated crimes on the Rp 2.89 trillion disbursement.

"We are not law enforcers. We suggest that law enforcement institutions follow up our findings," Hadi said.

Hadi refused to comment when asked to whom the illegal bailout had been channeled.. "The law prevents us not to publicize those data," he said.

Rumors circulated that Rp 500 billion of the bailout had been transferred to politicians to be used as campaign funds ahead of the 2009 general elections.

House's speaker Marzuki Alie denied the information. "Who said that? That is a lie," he answered The Jakarta Post.

When asked why he was so sure regarding that the data of bailout recipients had not been publicized yet, Marzuki did not react and left for his office. (bbs)

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