ID :
91255
Tue, 11/24/2009 - 01:45
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Shortlink :
https://www.oananews.org//node/91255
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INCREASE IN BAILOUT FOR BANK CENTURY ENGINEERED: BPK
Jakarta, Nov 23 (ANTARA) - The results of the State Audit Board (BPK)'s investigative audit on Bank Century indicate a suspected effort to engineer additional bailout funds (PMS) for the bank, BPK chairman Hadi Purnomo said.
"The Rp6.7 trillion bailout funds were disbursed in four stages. But the disbursement of the second phase worth Rp2.2 trillion was done without consultations with the Coordination Committee (KK). This was against LPS Regulation No. 3/PLPS/2008," Poernomo said after handing over the BPK audit report on Bank Century to House Speaker Marzuki Alie here on Monday.
Based on the BPK audit, additional bailout funds for Bank Century had been engineered so that the bank would get an injection not only to meet its capital adequacy ratio (CAR) requirement but also to meet the need for increasing its liquidity.
The BPK also found that Bank Indonesia (BI/the central bank) and the Financial System Stability Committee (KKSK) did not apply measured criteria in concluding there would be a systemic impact of the Bank Century crisis but only used its own judgment.
Poernomo said that Bank Century was taken over by the Deposit Insurance Agency (LPS) only based on Government Regulation in lieu of Law No.4/2008, and without comprehensive, measured and latest data on the bank's condition.
KKSK's decision in naming Bank Century a failed bank with systemic impact but without mentioning the costs the LPS has to spend to handle the bank, violates LPS Regulation No. 5/LPS/2006, he said.
Hadi Poernomo also said that the Rp5.86 trillion loss suffered by Bank Century was a loss which emerged as a result of unsound practices and violations of regulations by the bank's executives and other parties.
"The loss suffered by Bank Century but was covered with a bailout by the LPS which is actually state money," the BPK chairman said.***2***
"The Rp6.7 trillion bailout funds were disbursed in four stages. But the disbursement of the second phase worth Rp2.2 trillion was done without consultations with the Coordination Committee (KK). This was against LPS Regulation No. 3/PLPS/2008," Poernomo said after handing over the BPK audit report on Bank Century to House Speaker Marzuki Alie here on Monday.
Based on the BPK audit, additional bailout funds for Bank Century had been engineered so that the bank would get an injection not only to meet its capital adequacy ratio (CAR) requirement but also to meet the need for increasing its liquidity.
The BPK also found that Bank Indonesia (BI/the central bank) and the Financial System Stability Committee (KKSK) did not apply measured criteria in concluding there would be a systemic impact of the Bank Century crisis but only used its own judgment.
Poernomo said that Bank Century was taken over by the Deposit Insurance Agency (LPS) only based on Government Regulation in lieu of Law No.4/2008, and without comprehensive, measured and latest data on the bank's condition.
KKSK's decision in naming Bank Century a failed bank with systemic impact but without mentioning the costs the LPS has to spend to handle the bank, violates LPS Regulation No. 5/LPS/2006, he said.
Hadi Poernomo also said that the Rp5.86 trillion loss suffered by Bank Century was a loss which emerged as a result of unsound practices and violations of regulations by the bank's executives and other parties.
"The loss suffered by Bank Century but was covered with a bailout by the LPS which is actually state money," the BPK chairman said.***2***
