The House of Representatives legislators calling for an inquiry into the Bank Century scandal are set to expand the probe into the distribution of the government’s bailout fund to all depositors’ accounts, including “non-suspicious ones”.
The proposal comes in response to the initial results of an audit announced last week by the Financial Transactions Report and Analysis Center (PPATK), which found 50 suspicious transactions between accounts in Century and accounts in 10 other financial institutions that amount to Rp 150 billion.
One of the inquiry initiators, Maruarar Sirait from the Indonesian Democratic Party of Struggle (PDI-P), said the PPATK report could mislead public’s demand for a clear explanation on what happened to the entire bailout fund.
“I have a feeling that if we approach this case through the PPATK’s angle, our inquiry will meet a dead end,” he said.
The government bailed out Century for Rp 6.76 trillion (US$716 million) between Nov. 24, 2008, and July 24, 2009, on fears that its collapse could have a ripple effect in the country’s banking system.
The House inquiry team into Century, which begins its mandate Tuesday, was initiated under the suspicion there had been abuse of power in the decision to bail out the bank last year, involving top government and Bank Indonesia officials.
There is widespread speculation that the bank, since re-branded Bank Mutiara, was bailed out to save depositors who were major donors to President Susilo Bambang Yu-dhoyono’s presidential campaign.
“Through the inquiry, we will audit all accounts in Century, not only those deemed suspicious by the PPATK,” Maruarar said. “There are black boxes still to be opened.”
Another inquiry initiator, Andi Rahmat from the Prosperous Justice Party (PKS), said the PPATK’s report could not be used as a basis to draw a conclusion on the alleged misappropriation of the bailout fund.
“The PPATK audit is very small in scale, covering only Rp 150 billion; it’s basically a snapshot,” he said.
“What we need to know is what happened to the Rp 5.8 trillion in losses suffered by the government as highlighted in the audit by the BPK [Supreme Audit Agency].”
The BPK audit was submitted to the House earlier this month, before the PPATK issued its statement.
The BPK audit tagged at Rp 5.8 trillion the funds tied to the illegal financial activities carried out by Century’s original shareholders, which later had to be covered by the government.
The BPK also said Rp 2.8 trillion of the bailout was not justified as it was disbursed after a regulation on the financial safety net was rejected by the House on Dec. 18.
“The only way to get a clear picture of this mess is by accessing all transactions by all depositors in Century,” Andi said.
To be able to audit all accounts, the House will have to rely on the PPATK, which it deems is reluctant to dig deeper into the disbursement of funds out of fear for its safety and legal standing in probing non-suspicious accounts, whose secrecy is protected by law.
Andi said the PPATK’s reluctance was acceptable, but added the officials might also face a conflict of interests, as most key auditors and officials at the PPATK were on loan from the Finance Ministry and Bank Indonesia.
“To end all fears and to let the PPATK work at ease, the President should issue a government regulation-in-lieu-of-law to ensure all PPATK activities in relation to the House inquiry are protected by law,” he said. (adh)
| 
|
|
|
|
|
|
|