Erwida Maulia, Jakarta – A witness confirmed Tuesday the use of Bank Indonesia funds to make state prosecutors drop investigations into alleged graft involving two former top officials at the central bank in 2003.
Former BI legal bureau head Oey Hoey Tiong said Rp 68.5 billion (US$7.1 million) out of Rp 100 billion in Indonesian Banking Development Foundation (YPPI) funds taken over by the bank went to prosecutors investigating the alleged embezzlement of the bank's liquidity support (BLBI), in which former BI governor Soedradjad Djiwandono, former deputy governor Iwan R. Prawiranata and three former directors were implicated.
Oey was testifying at the Corruption Court in the graft case of Golkar politicians Hamka Yandhu and Anthony Zeidra Abidin, who are accused of receiving the misappropriated BI funds.
The court also heard defense lawyers read out the transcript of a recorded conversation between Oey and Anthony made early last year, which revealed the handover of the funds to prosecutors. Oey admitted to taking part in the conversation.
The government disbursed Rp 144.5 trillion of BLBI funds to ailing major banks during the Asian monetary crisis in 1997 and 1998, but failed to dun the debts. It instead granted debtors large discounts and acquitted some of them of criminal charges during Megawati Soekarnoputri's presidency.
"Oey told me that Rp 5 billion had been earlier given to Pak Soedradjad and Pak Iwan to prevent their detention; the money was handed over to the prosecutors," Anthony told the court.
Prosecutors YW Mere and Baringin Sianturi were in charge of investigating Iwan; while YW Mere, Chairul Amir, Enriana Fahruddin, Andi M Iqbal and Robert Pelealu were in charge of investigating Soedradjad.
Oey told the court Soedradjad received a total of Rp 25 billion in legal aid from BI, Iwan Rp 13.5 billion, while three former BI directors – Hendro Budiyanto, Paul Sutopo and the late Heru Supraptomo – received Rp 10 billion each.
The Supreme Court convicted the three former BI directors, also in relation to the BLBI case, to 18 months in prison each.
The BI graft case came to the fore after the Supreme Audit Agency reported to the Corruption Eradication Commission its findings on the embezzlement of the Rp 100 billion.
Some Rp 68.5 billion of the fund was used for legal aid for former BI senior officials, while the remaining Rp 31.5 billion was given to legislators of the House of Representatives' then Commission IX overseeing financial affairs to expedite the settlement of BLBI cases and pass the amendment of the 1999 BI law.
Besides Hamka and Anthony, who allegedly channeled the embezzled money to fellow Commission IX members, former BI governor Burhanuddin Abdullah, former chief of BI's Surabaya office Rusli Simanjuntak and Oey are standing trial in the case.
Others implicated include former BI deputy governor Aulia Pohan (the father of President Susilo Bambang Yudhoyono's daughter-in-law), State Minister for National Development Planning Paskah Suzetta, and Forestry Minister MS Kaban.
Paskah was then deputy head of Commission IX, while Kaban was one of its members.
Recorded conversation between Anthony Zeidra Abidin (AZA) and Oey Hoy Tiong (OHT):
AZA: But, how did it become so huge, Rp 68.5 billion? For how many people was it?
OHT: Five.
AZA: It was outside the official budget?
OHT: It was outside.
AZA: What was the official budget for?
OHT: It was to pay lawyers.
AZA: So there was (an official budget) from BI and there was an additional budget (from YPPI). Is there proof of issuance for the additional one?
OHT: No, there isn't.
AZA: So it was just disbursed like that?
OHT: For lawyers, they used the official budget. For prosecutors, they sought their own way.
AZA: Who handed over the money?
OHT: Each of the former (members of the BI board of governors).
AZA: They were about to detain Pak Iwan?
OHT: The detention order was already signed.
AZA: So when was it settled...?
OHT: The letter was ripped up. Pak (Soerajad) didn't dare to come to Jakarta. He was in Singapore.
AZA: It would be very embarrassing if he were detained.
OHT: We'll do whatever (it takes to prevent that). Pak (Soedrajad) told us to find someone to do something about this. We couldn't ask the AGO straightly about these matters. It would ruin our relationship. He used his own man, we don't know who he is. We only gave him the funds. He checked how much he needed, and then the amount was proposed to the board.