T

he interim leadership of the Corruption Eradication Commission (KPK) has denied reports that it has dropped the probe into the Bank Indonesia liquidity support (BLBI) case which could implicate President Joko '€œJokowi'€ Widodo'€™s patron and former president Megawati Soekarnoputri.

The KPK leadership issued a statement on Tuesday defending its handling of the case, which has seen no progress since the installment of interim commissioners Taufiequrachman Ruki, a former KPK chairman under Megawati'€™s tenure, Johan Budi and Indriyanto Seno Adji.

'€œThe investigation into the BLBI case is still ongoing. We haven'€™t dropped it,'€ Indriyanto said.

Many have doubted if the interim leadership will be able to prosecute the BLBI case given its political nature.

The last time the KPK worked on the BLBI case was in December when it questioned former coordinating economic minister Rizal Ramli.

At the time of the probe, then KPK chairman Abraham Samad vowed that he would complete the BLBI investigation before his tenure ended in December 2015.

Abraham also hinted in August 2014 that the KPK would summon Megawati in the case.

Following a standoff between the KPK and police, Abraham was dismissed from his post in February.

Speculation was rife that the appointment of Ruki was part of a plan to halt the probe into the BLBI graft.

However, Indriyanto said that the KPK would resume questioning witnesses in the case as soon as KPK leaders had met with the BLBI investigation team in the near future.

'€œI have yet to receive an update from the team handling the case,'€ he said.

During the 1997-1998 Asian financial crisis, the government, through the central bank, provided liquidity support of Rp 144.5 trillion (US$10,82 billion) to assist 48 commercial banks in coping with massive runs, but 95 percent of the money was eventually embezzled.

After his questioning in December last year, Rizal, a former minister under the tenure of Megawati'€™s predecessor Abdurrahman '€œGus Dur'€ Wahid, blamed Megawati for the massive financial losses from the BLBI scandal.

Rizal said that the debtors lobbied the Soeharto administration, convincing high-ranking officials to allow them to pay back their debts to the state using assets, whose value was constant, rather than cash.

Rizal said that Gus Dur deplored the Soeharto administration'€™s decision, which he said would cause the state to suffer massive financial losses, as the value of the assets would decrease overtime.

'€œTo make sure that the tycoons paid back the same amount as they had borrowed from the state, we issued what we call a personal guarantee notes policy. The policy meant that if the tycoons couldn'€™t pay their debt, then their families, until the third generation, bore the responsibility to pay,'€ he said.

Rizal said Megawati'€™s government reversed the policy.

To replace the personal guarantee notes policy, Megawati, after receiving input from her Cabinet ministers, including former finance minister Boediono, coordinating economic minister Dorodjatun Kuntjoro-Jakti and state-owned enterprises (SOE) minister Laksamana Sukardi, issued Presidential Decree No. 8/2002, which regulated these '€œrelease and discharge'€ letters, freeing recipients of the funds from any obligation to fully pay back the debts.