KPK Hopes to Bring to Court Bank Century Case End of January

Jakarta (Antara) - The Corruption Eradication Commission (KPK) said it hopes to bring the bank century case to court by the end of January, next year. Former deputy governor of Bank Indonesia Budi Mulya will stand trial to face charges related to granting of short term financing facility (FPJP) for Bank Century and the determination of the sick lender as a failed bank with systemic impact. KPK already received audit report from the Supreme Audit Agency (BPK) saying the state suffered a total loss of Rp7.4 trillion including Rp689.3 billion in FPJP and Rp6.76 trillion in bail-out fund by the state-owned Deposit Insurance Agency (LPS), a move followed the determination of the bank as a failed lender. "KPK is studying the report and the next process is communications between the KPK investigators and the general prosecutor before the dossier is submitted to the court," Deputy Chairman of KPK Bambang Widjojanto said in a year-end news conference on Monday. The government and Bank Indonesia defended the granting of the FPJP and the determination of Bank Century as a failed lender saying allowing the bank to collapse could trigger run on bank amid the global financial turbulence in 2008. The House of Representatives, however, decided the bail out illegal, a decision that led to legal investigation by the Corruption Eradication Commission (KPK). At that time the bank had only a capital adequacy ratio of 2.02 percent much below the minimum limit of 8 percent to be entitled to FPJP. Bank Indonesia, therefore, changed the criteria, its own regulation, to allow the bank to receive the FPJP. Besides Budi Mulya, the KPK has named Siti Chodijah Fajriah, another former deputy governor of the central bank as a suspect but Siti is still sick that she could not follow the process of investigations. Bambang said so far KPK by involving experts has questioned 94 witnesses including Vice President Boediono, who was governor of the central bank at that time. Observers and some lawmakers have said Boediono was the most responsible in the case. Budi Mulya will be charged with abuse of power in sanctioning the granting of FPJP to Bank Century and determining the bank as a failed lender with systemic impact that led to the bail out by LPS. Bank Century scandal began after it was robbed by its owners , darined it with cash including funds belonging to its depositors. (*)