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Former BI official points finger at VP in Bank Century scandal
More revelations have emerged that point to the allegedly key role played by Vice President Boediono in the disbursement of short-term financial assistance (FPJP) to Bank Century, now Bank Mutiara
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ore revelations have emerged that point to the allegedly key role played by Vice President Boediono in the disbursement of short-term financial assistance (FPJP) to Bank Century, now Bank Mutiara.
Speaking as a witness in the trial of former Bank Indonesia (BI) deputy governor Budi Mulya, who stands accused of malfeasance in the bailout decision, former director for banking supervision Zainal Abidin said that Boediono, who was BI governor at the time, was the man behind the FPJP policy.
'It was the BI governor first, then others such as Pak [Budi] Rochadi, Siti Fadjrijah, Miranda Goeltom, Muliaman Darmansyah pitched in,' Zainal said during the hearing at the Jakarta Corruption Court on Friday in response to the presiding judge's question, 'Who insisted on disbursing the FPJP to Bank Century?'
Miranda was BI's senior deputy governor, while Rochadi, Siti and Muliaman were BI deputy governors.
According to the Corruption Eradication Commission's (KPK) indictment against Budi, the alleged crime was committed 'collectively' by Boediono, Miranda, Siti, Rochadi, Muliaman and two other BI deputy governors Hartadi Sarwono and Ardhayadi Mitroatmodjo.
Muliaman is currently the chairman of the Financial Services Authority (OJK). Miranda, Hartadi and Ardhayadi retired from their posts several years ago, while Rochadi died while visiting New York in July 2011, and Siti suffered a stroke in 2003 and is now incapacitated.
As of now, Budi is the only suspect in the case, with Siti's ill-health preventing the KPK from questioning her.
'The investigation into the Century case has not stopped. We are collecting further evidence from the trial to determine the possible roles of other individuals,' KPK spokesman Johan Budi said over the weekend.
Zainal said that initially, Bank Century did not meet the requirement to receive the FPJP as its capital adequacy ratio (CAR) on Oct. 31, 2008, plunged to minus 3.53 percent, far below the minimum 8 percent CAR required by BI.
'My analysis on Century was that the bank should be closed, as salvaging it would take Rp 6 trillion [US$530 million] to Rp 7 trillion, and Century did not meet the FPJP requirement,' Zainal said, adding that his recommendation was rejected in a BI governors council meeting on Nov. 13, 2008, at which the council decided to rescue Bank Century.
'I could tell from Bu Miranda's voice [during the meeting] that she was angered by my recommendation,' he added.
Zainal also said that Boediono gave indirect instructions to review BI's rules on the issuance of FPJP funds.
'The BI regulation [governing the FPJP] has been reviewed, hasn't it?' Zainal said, quoting a question asked by Boediono in the meeting, which he interpreted as an indirect order to change the regulation to cover Century.
Zainal also revealed that Siti had reminded him not to press ahead with his recommendation to shut down Bank Century because the BI employees foundation had Rp 83 billion deposited in the bank. If Century collapsed, the foundation would have lost all its money as the government's guarantee program only covered deposits up to Rp 2 billion.
Another witness in the trial, Bank Century's former professional staffer Joko Hertanto Hendra, testified that the bank had given a car for one of Miranda's relatives to use prior to the approval of the FPJP for Century, raising speculation that Miranda's insistence on rescuing the bank was plagued by a conflict of interest.
'I knew from my staff Kurniadi that we lent a Hyundai car to one of Bu Miranda's family members,' Joko said, adding that he did not know the motive behind the move.
Joko's revelation is reminiscent of previous allegations in 2009 that Bank Century shareholder Robert Tantular had showered Miranda with luxury items and a Jaguar sedan to coax her into helping to smooth Century's bailout request. The allegations have been denied by both Robert and Miranda.
The Supreme Audit Agency (BPK) announced late last year that the state had lost more than Rp 7 trillion in the bailout; Rp 6.7 trillion of which was direct bailout funding, while an additional Rp 689 billion comprised the FPJP funds.
