BPK FINDS NINE VIOLATIONS IN BANK CENTURY FINANCES

Jakarta, Dec 16 (ANTARA) - The State Audit Board (BPK) has found at least nine alleged violations in its investigative audit on Bank Century finances, BPK member Hasan Basri said.

"With the findings of nine alleged violations, we have concluded that Bank Indonesia (BI/the central bank) did not give complete and comprehensive data to the finance minister before Bank Century was declared a failed bank with a possible systemic impact," Hasan Basri said at a meeting with the House Inquiry Committee on the Bank Century case here on Wednesday.

He said the violations had been taking place over a long period, namely since three banks merged to form Bank Century in 2001 until BI lifted Bank Century's status as a private bank under its intensive supervision.

Basri said violations had also occurred in the runup to the merger of the three banks (CIC, Piko and Dampak) into Bank Century, namely during the acquisition of a foreign financial institution named 'Cingkara' without the approval of BI.

"The BI governor at the time helped smooth the merger process of Bank Century," he said.

After the merger, the supervision carried out by BI was weak, because it let Bank Century fabricate documents.

The other BPK findings included the fact that Bank Indonesia had provided a short-term loan facility (FPJP) for Bank Century in violation of existing regulations.

"Actually, Bank Century did not meet the requirements to receive the FPJP facility, but BI altered the requirements concerned which enabled Bank Century to receive the loan," he said.

BPK Chief Hadi Purnomo meanwhile said the BPK
as not satisfied with the BI explanations on the Bank Century case, and that it had asked the central bank to provide a clear and professional explanation.***