Jakarta, ID
Monday, May 28 2012, 18:12 PM

National

AGO, Police fail to show for meeting with KPK

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Attorney General Hendarman Supandji and National Police chief Gen. Bambang Hendarso Danuri failed Thursday to attend a meeting with the Corruption Eradication Commission (KPK) to discuss the Rp 6.76 trillion (US$716 million) Bank Century bailout.

"We have to delay the meeting until further notice," the KPK's deputy for enforcement, Ade Rahardja, told reporters at the KPK building.

Previously the antigraft body had invited leaders of the AGO and National Police to meet to form a coordinated investigation into alleged legal violations that occurred during the bailout.

The Supreme Audit Agency (BPK) in its recent audit of the bank bailout process, cited several possible violations.

Ade said the police chief and attorney general had other activities that could not be rescheduled so they had to postpone the coordination meeting.

"In the meeting, we were to have discussed efforts to coordinate investigations.

"We had expected the attendance of the leaders of the police and the AGO," Ade said.

Deputy Attorney General Marwan Effendi, who showed up at the KPK offices, declined to comment on the absence of the attorney general, while police spokesman Insp. Gen. Nanan Sukarna said he was not aware of any invitation from the KPK.

Previously, KPK deputy chairman Chandra M. Hamzah said coordination was needed to avoid overlapping investigations.

"We want to determine where the corruption, if any, took place, and differentiate it from financial crimes and money laundering," he said at an event to launch a book by fellow KPK deputy chairman Bibit Samad Rianto on Wednesday night.

He stressed the KPK had identified a number of legal and policy violations it had to further investigate since the violations may have enriched certain people and caused losses to the state.

The takeover of ailing Bank Century by the government, via the Deposit Insurance Agency (LPS), led to the issuing of Rp 6.76 trillion to salvage the bank amid fears voiced by the government, that if the step was not taken, it would pose a systemic risk to the banking sector.

Apart from alleged legal and regulatory violations, the BPK audit on the bailout hinted at indications of money laundering and other financial crimes.

The BPK audit was completed two weeks ago and submitted to a special inquiry committee at the House of Representatives set up to look into the bailout.

The KPK has set up a special nine-member team to investigate the bailout, but many are skeptical that public officials will be held accountable.

Meanwhile, the House's inquiry committee on Thursday questioned officials from the BPK and Center for Financial Transaction Analysis Report (PPATK) in its continued investigation into the bailout.