http://thejakartaglobe.com/business/bad-data-used-in-bank-century-bailout-indonesian-audit-agency/331839
September 25, 2009 Dion Bisara Bad Data Used in Bank Century Bailout: Indonesian Audit Agency The Supreme Audit Agency said on Friday that it believed the central bank's data on PT Bank Century's condition prior to its bailout in November was "invalid." The government relied on this data when it made the decision to proceed with the Rp 6.7 trillion ($677.4 million) rescue for the ailing lender. "The finance minister [Sri Mulyani Indrawati] told us that she doubted the accuracy of the data presented by the central bank during the meeting when it was decided to save Century," said Anwar Nasution, the chairman of the auditor known as the BPK. "Vice President-elect Boediono, who was the central bank's governor in November, said that he was also concerned about the data." In Nov. 20, at the height of global economic meltdown, the Finance Ministry's Financial System Stability Committee (KSSK) convened a meeting with Bank Indonesia and the Deposit Insurance Corporation (LPS) to discuss the Century crisis, which was facing bankruptcy if the government hadn't intervened. It was decided during the meeting that the LPS would inject about Rp 6.7 trillion into Century, more than four times the initial amount agreed to by the House of Representatives. After the full cost became apparent, BPK was asked by the House on Aug. 27 to audit the bailout. "Hopefully, the information hasn't been trashed or went unrecorded," Anwar said. "We' re also checking on whether there was any criminal action involved in the bailout, be it at Century or elsewhere." When asked why Sri Mulyani had approved the bailout despite the problems with the data, Anwar declined to comment. Sri Mulyani has insisted that the government's bailout of Century was aimed solely at avoiding systemic risks to the nation's banking system. Anwar acknowledged that the BPK was not in a position to judge the finance minister's actions, which were based on the emergency government regulation in lieu of law that established the Financial System Safety Net. "We are not law enforcers. We will report to the House and then they will seek clarifications from the Supreme Court," he said. Anwar said that the House of Representatives had set Wednesday as the deadline for submission of the agency's findings. "We will present them with an interim report. But I will make sure that the report to the Corruption Eradication Commission [KPK] will be finished by Oct. 20." Related articles Sri Mulyani, Boediono To Face Indonesia's Audit Agency Over Bank Century 10:04 PM 15/09/2009 Major Bank Century Shareholder Tantular Convicted of Fraud 8:45 PM 10/09/2009 Bank Century: Will Indonesia's Top Officials Survive the Fallout? 9:55 PM 06/09/2009 Lawmakers Demand Answers on Bank Century 9:45 PM 04/09/2009 Diet of Risky Junk Bonds Contributed to Bank Century's Downfall 9:21 PM 04/09/2009 [Non-text portions of this message have been removed]
