Jakarta – Former state secretary Moerdiono on Thursday pointed the finger at ex-president Soeharto, saying Soeharto gave his approval to the disbursement of billions of dollars under the controversial Bank Indonesia liquidity assistance (BLBI) program.

Contrary to recent denials by four former finance ministers, Moerdiono told the parliament yesterday the BLBI assistance channeled to ailing banks was the policy of the former Soeharto administration.

The four ministers earlier blamed former central bank governor Soedradjad Djiwandono, stressing he misinterpreted government policy. "Moerdiono just confirmed that Soeharto did give authorize a direction [disposition] approving disbursement of the BLBI on December 27, 1997, head of parliamentary working committee on BLBI," Sukawaluyo Mintohardjo, told reporters following a hearing with Moerdiono. "He [Moerdiono] promised he would provide details of the disposition soon," Mintohardjo added.

Soeharto, who was forced down in May 1998 after 32 years in power, is accused of massive corruption and power abuse. "Moerdiono said the government was 'almost 100% sure' that the channeling of BLBI was the right policy," Mintohardjo said.

The former state secretary yesterday also called on the parliament to provide a thorough explanation concerning the BLBI to the public so that the people could understand that the policy was taken to keep the banks afloat at the peak of the monetary crisis.

"The way I see it, the public have received confusing and biased information [on BLBI]. Therefore I'm now asking this parliamentary committee to provide a thorough explanation," Mintohardjo quoted Moerdiono as telling the parliament. "I think Moerdiono has given us truthful information about this matter," said the committee head.

The working committee last week summoned Soeharto to the parliament to explain the BLBI policy. He failed to turn up and was unable to receive the committee at his residence due to ill-health.