Corruption commission takes over BI liquidity scandal

Enny Wulandari , The Jakarta Post , Jakarta | Wed, 10/22/2008 7:54 PM | National

The Corruption Eradication Commission (KPK) is taking over a mammoth scandal involving Bank Indonesia liquidity aid (BLBI), and is assembling four special teams to handle the case.

The move was announced by KPK chief Antasari Azhar on Wednesday noon after a closed meeting with officials from the Attorney General's Office.

Public pressure had mounted for the KPK to take over the investigations after the conviction of AGO prosecutor Urip Tri Gunawan who once headed a BLBI investigation team.

Urip was sentenced to 20 years in jail for receiving a US$660,000 bribe from businesswoman Artalyta Suryani to stop a BLBI probe into tycoon Sjamsul Nursalim.

Antasari said each team will be responsible for different cases relating to the embezzlement of public funds that were intended to bail out local banks from fallout during the 1997 Asia financial crisis.

The first team, he said, will handle cases that have already been given a final legal verdict from the Supreme Court.

"In this respect, the KPK would act as a special supervisor to monitor the return of assets," he said.

The second team will resume investigations into cases that had been dropped by the AGO because debtors had repaid their loans and had received clearance letters (SKL) from the government as had happened in Sjamsul's case.

Antasari said, "The KPK will study the processes undertaken for the issuance of SKL. This team will study nine banks that have gained government (SKL) clearance including BDNI and BCA."

The third team will investigate cases that have been dropped because no losses inflicted on the state, and the fourth team will handle cases currently being handled by the finance ministry's office.

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