Jakarta, ID
Monday, May 28 2012, 15:56 PM

National

KPK plans to question Mulyani on Century

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The Corruption Eradication Commission (KPK) plans to summon Finance Minister Sri Mulyani in its investigations into the Bank Century case.

The plan was announced following the KPK’s questioning of several officials, including the Financial System Stability Committee (KSSK) former secretary Raden Pardede, and two Bank Indonesia (central bank) top brass.

On Wednesday, the KPK questioned Bank Indonesia banking supervision-I director Budi Armanto, and one of the employees of the supervision directorate, Pahla Santosa.

“They were being questioned as part of the Bank Century investigation,” KPK spokesman Johan Budi told reporters Wednesday.

On Tuesday, the KPK questioned Raden, who said he was questioned in relation to documents submitted by Mulyani to the commission on Nov. 30, one day before the House of Representatives decided to establish a special inquiry committee to conduct a procedural investigation into the case.

After questioning Raden, KPK interim chairman Tumpak Hatorangan Panggabean said the commission planned to summon Mulyani as soon as possible, but had not set a date yet.

Mulyani is the former head of the KSSK, and was allegedly partially responsible for a decision at a KSSK meeting in November 2008 to bail out the bank, eventually costing the state an estimated Rp 6.76 trillion (US$723.32 million).

The government has been criticized for its handling of the bailout, because the cost ballooned 10-fold from the government’s original estimate.

For that reason, Tumpak said Mulyani needed to be summoned to clarify the original decision.

Raden reportedly also took part in the KSSK meeting, which was also attended by Vice President Boediono (who was Bank Indonesia governor at the time), as well as commissioners of the Deposit Insurance Agency (LPS).

The KSSK meeting followed a central bank leadership meeting, which declared Bank Century a failed bank that posed a systemic threat to the banking sector.

An investigative audit report by the Supreme Audit Agency (BPK) found that during the meeting Bank Indonesia may not have been completely honest about the true condition of Bank Century, prior to the conclusion that the bank needed to be saved.

In minutes of meeting circulating in the media, Bank Indonesia maintains its argument that Bank Century posed a systemic threat, while Mulyani remained cautious.

Both Mulyani and Boediono have repeatedly stated that in deciding to bail out Bank Century they did the right thing for the national economy during a time of global financial crisis, and that they have no regrets whatsoever.

Separately, the House inquiry committee also plans to summon both Mulyani and Boediono for the second time for their involvement in the case.

One of the committee members, Bambang Soesatyo from the Golkar Party, said Mulyani was to be summoned on Jan. 13. On the same date the committee would also summon former vice president Jusuf Kalla, who was acting president at the time the bailout decision was made.

Boediono would be summoned to a second hearing on Jan. 12, following an initial session held Dec. 22, after which legislators said he had not been completely open.