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Former BI governor blows whistle over scandal

Source
Jakarta Post - October 16, 2008

Irawaty Wardany, Jakarta – Former Bank Indonesia (BI) governor Burhanuddin Abdullah has accused former deputy Aulia Pohan of masterminding the misappropriation of an Indonesian Banking Development Foundation (YPPI) fund.

"Aulia Pohan informed me that the fund was necessary (to settle) the BLBI (BI liquidity support) case. I think it is clear enough that I was not the instigator (in the use of the YPPI fund)," Burhanuddin read out his defense plea at the Corruption Court on Wednesday.

Aulia, the father-in-law of President Susilo Bambang Yudhoyono's son, was questioned by the Corruption Eradication Commission (KPK) as a witness in the case.

In 2003, the BI board of governors decided to take Rp 100 billion (US$10.2 million) from the central bank's YPPI fund to settle a BLBI case, ensure an amendment to the BI law and finance legal aid for several BI senior officials implicated in a graft case.

The decision to tap the fund was made during two board of governors meetings, on June 3 and July 22, 2003.

However, Burhanuddin testified that some of the money had been disbursed by Aulia and former BI deputy governor Maman Sumantri before the July 22 meeting.

"Why did Aulia come up with the suggestion? It could have been investigated whether it was his decision or someone else's," Burhanuddin said.

"Why am I the only one being made responsible for a decision made by the board of governors?" he said, adding that all of the members of the board that approved the decision over the two meetings should be made responsible.

"Am I a scapegoat being sacrificed for the greater good? I don't know the answer. All I know is that I am a suspect because I served as BI governor," he said.

Burhanuddin is charged with violating article 2 of the Anti Corruption Law, which stipulates that a person found to have enriched themselves or others or a corporation resulting in state losses is liable to a maximum sentence of life in prison or a minimum of four years in prison.

The KPK prosecutors demanded the court sentence Burhanuddin to eight years' imprisonment.

Burhanuddin said BI's policy of giving financial legal aid to former BI senior officials had long been in place when he began his tenure as BI governor on May 20, 2003.

"I only implemented and continued the policy that had been carried out by my predecessors," he said.

Burhanuddin's lawyer, M. Assegaf, said it could not be proven that his client's use of the YPPI fund had resulted in state losses because several experts presented in the trial had disagreed on whether the fund could be classified as state money.

"So it cannot be proven that the decision caused state losses because a foundation fund can not be defined as state assets," he said.

The prosecution objected to the defense's plea, saying they would stick to their indictments.

The trial will be adjourned until Oct. 29, when the verdict will be read.

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