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Indonesia's Corruption Eradication Commission to Summon Tantular as Century Probe Expands

The Corruption Eradication Commission plans to summon convicted embezzler Robert Tantular as it extends its investigation beyond the controversial Rp 6.7 trillion ($710 million) bailout of PT Bank Century and into irregularities in the formation of the bank.

Tumpak Hatorangan Panggabean, the chairman of the commission, which is also known as the KPK, said on Tuesday that the antigraft body “would summon Robert,” but declined to provide further details. Tumpak made his comments a day after the commission’s investigators grilled Zaenal Abidin, a former central bank director of banking supervision, over the scandal for 12 hours.

Tantular was sentenced to four years in prison in September for defrauding the bank’s customers by secretly investing funds in high-risk and fraudulent junk bonds, a key element in the demise of Bank Century.

Tumpak also said the commission plans to question former central bank Deputy Governor Miranda Goeltom.

Goeltom has been accused of “sponsoring” the formation of the bank, which was the result of a merger of three small troubled lenders, PT Bank Pikko, PT Bank CIC International and PT Bank Danpac in 2004.

The commission is also investigating a Rp 24 billion bribery scandal linked to Goeltom’s election in the House of Representatives amid allegations the campaign was partially financed by Tantular. The antigraft commission’s deputy chairman, Haryono Umar, stated separately that the commission was moving in “chronological” order with the investigation, starting with the findings of the Supreme Audit Agency (BPK).

“There are nine irregularities discovered by the BPK. From the way the bank was formed, how it escaped the supervision of Bank Indonesia, all the way to the misappropriation of the bailout,” he said. “We are gathering evidence and testimony before we can officially charge someone with a corruption-related offense. There are many facets to the Bank Century case and we will be investigating every aspect of it.”

Haryono said that the KPK is still reviewing the BPK findings. “There are indications of money laundering and banking crimes. Of course, the commission only has the jurisdiction to investigate corruption-related offenses. Anything else would be handled by the National Police and the Attorney General’s Office,” he said.

Top officials of the KPK, the AGO and the National Police have been planning to discuss the Bank Century scandal but have failed to meet due to conflicting schedules. Haryono said the commission is also seeking documents from the Deposit Insurance Agency and Bank Indonesia to further its investigation. The KPK has already obtained dossiers from the Ministry of Finance and the Financial Transaction Report and Analysis Center (PPATK).

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