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Century committee to meet with LPS, depositors, Bank Mutiara management

Hans David Tampubolon, The Jakarta Post, Jakarta | Wed, 02/10/2010 11:15 AM
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The House of Representatives’ inquiry committee on the Bank Century bailout case will meet with the bank's former depositors, the Deposit Insurance Agency (LPS) and the management of Bank Mutiara on Wednesday.

Bank Century was renamed Bank Mutiara after the bailout.

"We are conducting this joint meeting so that everything is clear between the depositors, the LPS and Bank Mutiara," the committee chairman, Idrus Marham from the Golkar Party, told reporters at the House in Jakarta on Wednesday.

Bank Century was bailed out in November 2008 using Rp 6.76 trillion (US$716 million), which was disbursed by the LPS.

Some of the depositors, who felt victim to a bogus investment scheme conducted by Bank Century former owner Robert Tantular, have yet to receive compensation for their losses.

The government argues that the depositors lost their money due to their failure in investing in non-banking products.

The depositors, however, said that they had been fooled because the investment, called Antaboga Securities, was offered on official letters bearing Bank Century insignia.

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