T

he Corruption Eradication Commission (KPK) has urged Vice President Boediono and former finance minister Sri Mulyani Indrawati to reveal the truth about the 2008 controversial bailout of Bank Century when they appear as witnesses at the Jakarta Corruption Court.

Boediono, who was Bank Indonesia (BI) governor during the bailout, is slated to testify at the Jakarta Corruption Court on May 9 for former BI deputy governor Budi Mulya, who stands accused of malfeasance in the bailout decision, while Sri Mulyani confirmed she would be in court on Friday.

'€œWe expect them to be honest during their court appearances. Their testimonies will help the KPK step up its investigation and uncover other perpetrators,'€ KPK spokesman Johan Budi said on Wednesday.

Johan said the Vice Presidential Security Force would head up security at the court, but he called on the judge to open the court to the public.

'€œThe KPK expects the trial to be open to the public like other regular hearings, but the decision is in the judges'€™ hands,'€ Johan went on.

According to a KPK document, a copy of which was obtained by The Jakarta Post, Budi and '€œcolleagues'€ '€” Boediono; BI senior deputy governor Miranda Goeltom; and BI deputy governors Siti C. Fadjrijah, Budi Rochadi, Muliaman Hadad, Hartadi Sarwono and Ardhayadi Mitroatmodjo '€” allegedly misused their authority by channeling short-term financial assistance (FPJP) and by categorizing Bank Century as a potentially failed bank that posed a systemic threat to the banking sector.

Only Budi has been declared a suspect by the KPK. However, the agency usually defers prosecuting others until the court hands down a verdict on the first suspect.

Sri Mulyani'€™s testimony is expected to shift more weight on Boediono as the document reveals elements of deception in the bailout'€™s decision making.

During a Financial System Stability Committee (KSSK) meeting on Feb. 3, 2009, three months after the bailout decision, Sri Mulyani asked the attendees whether the decision to categorize the bank as one that posed a systemic threat could be reviewed.

The KSSK is a joint forum where the Finance Ministry, BI and other related agencies work on preventive measures against a financial crisis.

Sri Mulyani'€™s question was raised after the Deposit Insurance Corporation (LPS) reported that the bailout had topped Rp 6.1 trillion (US$527.57 million), far exceeding its initial estimate of Rp 632 billion.

Former KSSK secretary Raden Pardede told her there was no provision for such a request, while Boediono apparently told her that the meeting should focus more on how to save Century as the decision to bail it out had been agreed upon.

Sri Mulyani, currently managing director at the World Bank, also questioned BI'€™s professional judgment and supervision capacity as Century'€™s capital adequacy ratio (CAR) had plunged to -35.9 percent, and that more funds were apparently needed.

Boediono told her that she had made her decision and it would be a mistake to rescind it.

'€œI expressed my disappointment at BI when they told us that the bank'€™s CAR was just -3.5 percent and it would only need Rp 632 billion,'€ said Sri Mulyani, according to a document on her questioning.

Separately, Bambang Soesatyo of the Golkar Party, one of the lawmakers who initiated the inquiry into the bailout, said that the court should make use of the '€œrare'€ chance to grill Boediono in the case as he considered him a '€œkey witness as well as intellectual actor'€.

'€œBoediono has to explain the link between the Century owners and the inner circle of power at that time,'€ Bambang said.