News : KPK Gains Further Insight into the Distribution of Rp 456 Trillion of BLBI Funds

News : KPK Gains Further Insight into the Distribution of Rp 456 Trillion of BLBI Funds

The Corruption Eradication Commission (KPK) is gaining insight into the distribution of Bank Liquidity Assistance Funds (BLBI) to private banks totaling Rp 456 trillion. KPK Vice Chairman, M Jasin, said on Wednesday (19/11) that the distribution of these funds has thus far been given little attention.

The public eye has, until now, focused on the distribution of Rp 144.5 trillion of BLBI funds to a number of state-owned banks that are now undergoing investigation and prosecution by law enforcement agencies. An in-depth analysis of the Rp 456 trillion will be conducted in an exposé of the case by KPK, the Attorney General’s Office, and Bank Indonesia (BI).

In relation to this matter, KPK Chairman Antasari Azhar confirmed that he had requested that Bank Indonesia hand over a summary of the unsecured bonds. Antasari hopes that Bank Indonesia can comply within a week.

“However much money was distributed by Bank Indonesia, however much money can be recovered via legal means and through the department of Finance. That is what we will use to re-capitalize the unsecured bonds. Hopefully, this week more funds will become available,” he said.

In relation to the re-capitalization of private banks, KPK Vice Chairman for Repression, Chandra Hamzah, said that his directorate had recently received data from two obligor out of the twenty-four obligors that received a Settlement Letter (SKL). “The data from one obligor was only arrived today. Prior to this, the Attorney General’s Office was only able to submit the data of one obligor who had received the SKL. The delays are due to administrative hurdles,” he explained.

The Attorney General’s Office, according to Chandra, promised to quickly hand over data from other obligors. “These SKL can be handed over to KPK when they are complete. Indeed, at the Attorney General’s Office there are a number of administrative hurdles. But, the Director of Special Investigations, Muhammad Farela, continues to locate the data and convey it promptly to KPK,” Chandra said.

Antasari explained that KPK, along with other related institutions, would accelerate BLBI discussions before agreeing to a recommendation on how to resolve the BLBI problem. KPK will again held an exposé of BLBI with the Attorney General’s Office and a number of other institutions.

This exposé will be attended by former senior officials of the National Bank Restructuring Agency, Syafruddin Tumenggung and Putu Gde Ary Suta. KPK will also invite officials from the Department of Finance.

Source : Republika, 20 November 2008

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