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Hefty sentence sought for Budi Mulya in Bank Century scandal
Corruption Eradication Commission (KPK) prosecutors sought on Monday a 17-year prison sentence for former Bank Indonesia (BI) deputy governor Budi Mulya for his alleged role in the bailout of Bank Century in 2008, which resulted in more than Rp 7 trillion (US$592 million) in state losses
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To the dock: Former Bank Indonesia (BI) deputy governor Budi Mulya walks into the courtroom of the Jakarta Corruption Court before hearing the 17-year sentence demand made by Corruption Eradication Commission (KPK) prosecutors on Monday.(JP/Wendra Ajistyatama) (BI) deputy governor Budi Mulya walks into the courtroom of the Jakarta Corruption Court before hearing the 17-year sentence demand made by Corruption Eradication Commission (KPK) prosecutors on Monday.(JP/Wendra Ajistyatama)
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orruption Eradication Commission (KPK) prosecutors sought on Monday a 17-year prison sentence for former Bank Indonesia (BI) deputy governor Budi Mulya for his alleged role in the bailout of Bank Century in 2008, which resulted in more than Rp 7 trillion (US$592 million) in state losses.
KPK prosecutors said that Budi and a coterie of colleagues abused their authority by channeling short-term financial assistance (FPJP) worth Rp 689 billion to keep the bank afloat, and by falsely claiming that Bank Century posed a systemic threat to the banking sector, making it eligible for Rp 6.7 trillion from the Deposit Insurance Corporation (LPS).
'Our examination has found that defendant Budi Mulya is guilty of corruption, together with others, as stipulated in Article 2 of the Corruption Law,' prosecutor KMS Roni told a panel of judges at the Jakarta Corruption Court on Monday.
The crime was allegedly carried out by a group of individuals, including Vice President Boediono ' who was BI governor when the bailout took place ' then BI senior deputy governor Miranda Goeltom and then BI deputy governors Siti C. Fadjrijah, Budi Rochadi, Muliaman Hadad, Hartadi Sarwono and Ardhayadi Mitroatmodjo.
One day before the bailout decision, then BI director of the banking research and regulation directorate (DPNP) Halim Alamsyah, who is now BI deputy governor, presented an assessment stating that Bank Century did not pose a systemic threat. His assessment was dismissed by the BI.
In addition to the prison sentence, prosecutors asked the panel of judges to order Budi to return Rp 1 billion that he received from former Bank Century shareholder Robert Tantular in August 2008, around four months before the bailout decision.
'The defendant should also pay Rp 800 million in fines or serve another eight months in prison if he cannot afford it,' Rano said.
Prosecutors demanded that the Jakarta Corruption Court order Robert and another Bank Century owner, Hesham al-Warraq, to return Rp 2.7 trillion and Rp 3.1 trillion, respectively, to the state ' the amount of money that the two had allegedly embezzled from the bailout funds.
To the dock: Former Bank Indonesia (BI) deputy governor Budi Mulya walks into the courtroom of the Jakarta Corruption Court before hearing the 17-year sentence demand made by Corruption Eradication Commission (KPK) prosecutors on Monday.(JP/Wendra Ajistyatama)
'We also demand that the panel of judges sentence PT Bank Century, now Bank Mutiara, to pay Rp 1.5 billion in restitution to the state,' Roni said.
'If Bank Century [and its two owners] fail to pay the specified restitution within one month after the final ruling, then their assets [both the bank's and the owners'] in Indonesia and abroad can be confiscated by prosecutors to pay the restitution,' Roni said.
Responding to prosecutors' demands, Budi said he was shocked, and appealed to the panel of judges to grant him two weeks to prepare his defense statement for the next trial session.
'This is very shocking to me. It's unbelievable. I can not accept this. We made the policy to prevent a crisis in the banking sector because it was our job to do so. I am proud that I did my best to prevent the crisis at that time,' Budi said after the trial.
KPK prosecutors said that one of the incriminating factors that led to the hefty sentence demand was that throughout the trial Budi expressed no remorse or regret over his decisions that resulted in trillions of rupiah in state losses.
Apart from Budi, no other officials have been declared suspects by the KPK. However, the KPK usually waits until the court hands down its verdict on the first suspect before initiating lawsuits against others.
'Prosecutors' demands can give us clues about whether Budi was the only suspect or if there were others involved,' KPK deputy chairman Bambang Widjojanto said.
