LEGISLATOR CALLS FOR INVESTIGATION ON INDOVER

Jakarta, Oct. 23 (ANTARA) - A legislator of the Democrat Party, Vera Febyanti, has called for an investigation of Indover Bank , a company belonging to Bank Indonesia (BI) based in the Netherlands, for alleged financial irregularities that had brought it to the brink of bankruptcy.

"Indover must be investigated because many irregularities and instances of embezzlement with legal implications have happened in its operations. Criminal acts have been committed," Very Febyanti said here on Tuesday on the sidelines of a working meeting of the House of Representatives (DPR), BI and the government.

One of the irregularities was the issuance of a letter of comfort by BI to guarantee the operations of Indover Bank, she said.

"Moreover, . the letter mentions the government but the government said it does not know about it. It's a crime," she said.

Another irregularity was an indication of a mismatch where Indover used short-term liquidity to provide a long-term loan, she said.

Therefore, a special team needed to be formed to investigate the matter, she said.

"A special team outside BI must be formed to investigate Indover," she said.

Bank Indonesia Governor Boediono refused to comment on Indover when asked by the press after the working meeting.

The Indover Bank's operations were frozen by a Dutch court after the bank failed to honor obligations worth US$92 million.