House inquiry committee recommends suspension of Boediono, Sri Mulyani

The House of Representatives’ inquiry committee into the Bank Century debacle has recommended that all state officials implicated in the case be suspended from their posts should they feel that their obligation to answer the committee’s summons could disrupt their state jobs.

“This recommendation is made based on our considerations to optimize the committee’s investigation process and on the spirit to uphold the strong morality, integrity and the accountability of state officials,” the committee spokesman, Muhammad Romahurmuziy from the United Development Party (PPP), said on Thursday.

“The recommendation is also made based on the sense of justice.”

One of the committee members, Maruarar Sirait from the Indonesian Democratic Party of Struggle (PDI-P), said the state officials included Vice President Boediono and Finance Minister Sri Mulyani.

Boediono, who was then the Bank Indonesia governor, and Mulyani were respectively a member and the chair of the Financial System Stability Committee (KSSK) that decided to bailout Bank Century in November last year.

The bailout was considered controversial because it ballooned almost ten-fold to Rp 6.76 trillion (US$716.56 million) from its original estimate.

The audit report from the Supreme Audit Agency (BPK) said that Bank Indonesia might have violated a number of its own regulations during the Bank Century’s pre-bailout, bailout, and post bailout phases.