The Corruption Eradication Commission (KPK) has questioned two central bank officials in charge of supervising the daily operations of the troubled Bank Century, the recipient of a Rp 6.76 trillion (US$716 million) government bailout.
Monday’s questioning is the first major step taken in the case by the antigraft body since it announced last month it would investigate allegations of corruption in the bailout process, which had initially been estimated at less than Rp 1 trillion.
Those questioned by the KPK on Monday were Bank Indonesia officials Zainal Abidin and Hisbullah, who arrived at the commission’s office at 10 a.m.
They were still in the building as of 7:30 p.m.
KPK deputy chairman for enforcement Bibit Samad Rianto declined to provide details about the questioning.
“[The BI officials] have come to explain [the Century bailout],” he said.
“We’re going to dig up everything related to Century and call in for questioning anyone who can provide an explanation.”
The Century came to the fore in November last year when the government decided to bail out the ailing bank.
The interdepartmental Committee for Financial Sector Stability (KSSK) decided on Nov. 21, 2008, to save the bank amid fears that its collapse, at the peak of the global financial crisis, would threaten the country’s entire banking system.
At the KSSK meeting, officials agreed to provide the bank with a Rp 632 billion cash injection — a figure that later ballooned to Rp 6.76 trillion.
In its audit of the bailout, the Supreme Audit Agency (BPK) highlighted several instances of legal violations that had taken place in the pre-bailout, policy-making and post-bailout phases.
In the pre-bailout phase, the audit said, BI had failed to comply with its own regulations by allowing three ailing banks to merge to form Century.
In the policy-making phase to decide on saving the bank, BI had been less than truthful at the KSSK meeting about the dire condition of Century, the BPK said.
It added the Rp 6.76 trillion bailout fund had been channeled to Century without any legal basis.
A political investigation is also underway, with the House of Representatives eyeing high-ranking state officials, including Vice President Boediono (the BI governor at the time) and Finance Minister Sri Mulyani, who chaired the now-defunct KSSK, for questioning.
“We’ll intensify our investigation as of today,” KPK deputy chairman for prevention Haryono Umar said Monday after meeting with rock band Slank — renowned anticorruption activists in their own right — at their base in Potlot, South Jakarta.
Another KPK deputy chairman for prevention, M. Jasin, said the commission’s investigation of the case would intensify after the New Year, when three of the KPK’s leaders — interim chairman Tumpak Hatorangan Panggabean and deputy chairmen Bibit and Chandra M. Hamzah — return from leave.
“We’ll wait until all the KPK leaders are back in office before we take on the major corruption cases, particularly the Century case,” he said.
