Budi Sampoerna admits to withdrawing Rp 50b in bailout fund

Businessman Budi Sampoerna has admitted to withdrawing Rp 50 billion (US$5.37 million) out of Rp 6.76 trillion in Deposit Insurance Corporation (LPS) fund channeled to bail out Bank Century in November 2008, his lawyer says.

Budi’s lawyer Eman Achmad insisted on Wednesday that the withdrawal did not violate the LPS regulation, which limits the amount of withdrawal to Rp 2 billion per account.

“[The regulation applies] in the event of a bank closure. The bank was not closed,” Eman said after accompanying Budi who underwent nine hours of questioning at the Corruption Eradication Commission (KPK). Budi was tightlipped as he emerged from the questioning room, Antara reported.

Budi had found difficulties in withdrawing his money when the bank was developing liquidity problems, but managed to cash in Rp 50 billion after the bailout fund was disbursed. Until the bank was rebranded Bank Mutiara in October last year, Budi has withdrawn a total of Rp 395 billion, the lawyer said.

Speculation was rife that the bank was salvaged upon pressure from major depositors, including Budi who had a total of $113 million in saving in the bank.

Eman said Budi transferred $96.5 million of his deposit from the Surabaya branch of Bank Century to its Jakarta branch, $42.7 million of which was divided into 247 Negotiable Certificate Deposits (NCD) worth Rp 2 billion each upon recommendation of bank owner Robert Tantular.