Recordings may throw blame at Sri Mulyani

Hans David Tampubolon ,  The Jakarta Post ,  Jakarta   |  Sat, 12/12/2009 9:46 AM  |  Headlines

The House committee probing the Rp 6.76 trillion (US$716 million) Bank Century bailout scandal has obtained recordings it claims casts the finance minister and other officials in a bad light.

The Finance Ministry however strongly denied the claim.

Idrus Marham, the chairman of the House of Representatives’ special committee probing the scandal, said his committee requested the recordings be played at the next session to help the commission identify the reasons behind the government’s decision to bail out the bank.

“We may hold a public hearing to play the recordings,” he said Friday.

Bambang Soesatyo, a committee member from the Golkar Party, said the recordings contained conversations between Sri Mulyani, the former owner of Bank Century, Robert Tantular, and former Bank Indonesia senior deputy governor Miranda Swaray Goeltom during their meetings on Nov. 13, 20 and 21, 2008.

Certain parts of the conversation between Sri Mulyani and Robert in the Nov. 21 meeting indicated that Robert had asked the minister to cite the global economic crisis as the main reason behind the bailout decision. This meeting, which is believed to have been held by the Financial Sector Policy Committee (KKSK) led by Sri Mulyani, resulted in the decision to issue a bailout.

In other parts of the transcript, Sri Mulyani also criticized Robert and his bank for its poor capital asset ratio (CAR) of -35 percent to show that it was not feasible to bail out the ailing bank.  

Sri Mulyani has repeatedly said a potential systemic threat to the banking sector was the main reason behind the government’s decision to bail out the bank.

Bambang also said another recording revealed Miranda’s important role in the bailout process.

“Therefore, we also want to question Miranda and Robert in this investigation,” he added.

Idrus said the committee would begin working Monday by setting a schedule and drawing up a list of those who would be summoned and questioned.

“In the first hearing, we will likely summon [representatives from] the Supreme Audit Agency [BPK] and the Financial Transactions Report and Analysis Center [PPATK] to have them explain the audit report and the flow of funds after the bank was bailed out,” he said.

The BPK’s audit report said a number of possible legal violations had taken place before, during and after the bailout.

Before the bailout, the report said Bank Indonesia (BI) broke its own regulations and allowed three ailing banks to merge, forming Bank Century. In the policy-making phase to salvage the bank, the audit said BI did not disclose Bank Century’s real condition in a meeting with the Finance Ministry to discuss a bailout. The audit also said the issuing of the bailout fund after Dec. 18, 2008, did not have a solid legal basis.

“Implications that the recordings show Sri Mulyani in a compromising position are inaccurate, misleading and defamatory. The finance minister is considering taking legal action,” Finance Ministry spokesman Harry Z. Soeratin said Friday.

He added that Robert was not present for the final part of the KSSK meeting, and that Sri Mulyani did not talk with him via telephone. Indra Surya, the head of the ministry’s legal aid bureau, said the ministry had submitted the recordings to the BPK only, and not to the House committee.

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