Jakarta – Central Bank Governor Sjahril Sabirin was convicted of fraud for his role in allowing an illegal payment to PT Bank Bali, said state prosecutor Jan Mere.

The fraud involves 904 billion rupiah (S$159 million), more than half of which went to a company linked to the former ruling party Golkar. Bank Indonesia, the central bank, has been embroiled in scandals that involve US$7 billion (S$12.8 billion) which is not accounted for.

Last year, Sjahril was detained for almost six months because of his suspected involvement in the Bank Bali scandal, before he was returned to his position.

Lawyer Mohammad Assegaf argued that he had merely executed an order from the Indonesian Bank Restructuring Agency as part of a bank guarantee programme. "Why should the prosecutors demand Sabirin serve four years in jail?" he asked.

He said Sjahril is convinced there are political motives behind the charges. He said a feud between Sjahril and former president Abdurrahman Wahid centred on the same case.

Sentencing is scheduled in three weeks. Sjahril's lawyer said he will mount a strong defence against the central district court ruling.