Camelia Pasandaran – The government on Monday backed the House of Representatives' recommendation that law enforcement investigators question state officials who sanctioned the 2008 Bank Century bailout.
But it said the officials involved would not be stripped of their official duties during the investigation.
Djoko Suyanto, the coordinating minister for political, legal and security affairs, said state officials could only be fired if they had been convicted in a court of law.
"Only when they are declared defendants can they be temporarily deactivated, according to the law. Presumption of innocence remains paramount in this matter and all legal procedures must be followed accordingly," Djoko said.
Vice President Boediono, who was Bank Indonesia governor at the time, and Finance Minister Sri Mulyani Indrawati sanctioned the Rp 6.7 trillion ($737 million) bailout, arguing that the bank's collapse would have posed a systemic threat to the banking system at the height of the global financial crisis.
Djoko made his comments after meeting President Susilo Bambang Yudhoyono, National Police Chief Gen. Bambang Hendarso Danuri, Attorney General Hendarman Supandji and cabinet ministers.
The House has recommended state officials responsible for the bailout be suspended.
Before the meeting, Yudhoyono said that if any wrongdoing or negligence were revealed, it should first be determined whether it was the result of an administrative mistake or a crime.
"To know whether the problem is administrative or legal, it is your duty as ministers and law authorities to carry out your work to uphold the truth," Yudhoyono said.
"I've said several times that those who are guilty must be sanctioned, while those who are not guilty should not be punished. We call it justice and we aim for it, because our people demand justice. The truth must be upheld."
Djoko said lawmakers should investigate all allegations of crime and corruption.
"Law enforcers will proportionally follow up the case," he said. "The copy of the House recommendation has been delivered to the National Police and Attorney General's Office, while the KPK [Corruption Eradication Commission] has accepted it. The president has assigned the National Police chief and the attorney general to find out about allegations of violations or corruption." Djoko said Yudhoyono had directed him to coordinate with the KPK.
The Attorney General's Office has said it could seek the death penalty for Hesham al Warraq and Rafat Ali Rizvi, two foreign national shareholders of the former Bank Century accused of looting the lender before fleeing the country.
But Marwan Effendy, the deputy attorney general in charge of special crimes, has acknowledged that this could interfere with the process of seizing assets it is believed the two men have stashed in overseas banks.
"Authorities in Guernsey have pledged to help us [recover the assets] on the condition the defendants do not receive capital punishment," Marwan said earlier this month. No Indonesian court has ever demanded the death penalty in a graft case.