KPK Questions Budi Sampoerna

JAKARTA, KOMPAS.com - The Corruption Eradication Commission (KPK) questioned businessman Budi Sampoerna in connection with the  Bank Century case here on Wednesday. "Budi Sampoerna has been questioned in connection with the investigation into the Century Bank case," KPK spokesman Johan Budi said replying a question from newsmen.
     
The KPK investigating team would ask about the flow of funds from Bank Indonesia and the Deposit Insurance Agency that had gone to the Century Bank. Budi Sampoerna is one of the big depositors in Bank Century. His name came into the public spotlight over a dispute about his deposit and his efforts to reclaim  it.
     
Johan Budi would not explain in more detail about the questioning. He said it was part of the process of investigation by the KPK and it was closed to the public.
     
Budi Sampoerna arrived at KPK Building at around 9 am. He declined to make any statement to waiting newsmen. The Bank Century case emerged after the public knew that the central bank had extended funds in the form of Short-term Funding Facility (FPJP) to the bank.

The extension of the FPJP was done after the troubled bank applied for repositioning aid to Bank Indonesia in October 2008 totalling Rp1 trillion due to a liquidity problem.  But according to the Supreme Audit Board (BPK) BI had processed the application as an application for FPJP.

When Bank Century applied for the repositioning aid its  Capital Adquacy Ratio was recorded at 2.35 percent while according to Bank Indonesia Regulation Number 10/26/PBI/2008 a bank had to have minimally eight percent to be able to ask for funding. On November 14, 2008 BI changed the regulation requiring only a positive CAR for a bank to be able to ask for funding.

The BPK said  Bank Century was the only bank at the time that had a CAR below eight percent. However, BI continued to extend the FPJP in stages from November 14 to 18, 2008, to reach a total of Rp689 billion.
     
In the same month, Bank Century also received funds from the Deposit Insurane Agency (LPS) totalling Rp6.7 trillion. The funds from the LPS were given after BI on November 20, 2008 declared the bank a failed one that could cause a systemic breakdown.
     
The decision was then submitted to the finance minister as the chairperson of the Committee for Financial System Stability (KSSK). The KSSK upon receiving the letter then held a meeting on November 21 starting from 00.11 hours to 04.00 hours and later being continued until 06.00 hours.
     
According to the BPK the meeting was attended by then and now still finance minister Sri Mulyani as the KSSK chief, Raden Pardede as KSSK secretary and BI governor Boediono now vice president as KSSK member. The meeting was later continued with a meeting of the Coordination Committee attended by the KSSK chief, BI governor and the Commissioner Board of the Deposit Insurance Agency.

In the meeting they agreed to declare the Century Bank as a failed bank that could cause a systemic effect and to extend a bailout fund through the Deposit Insurance Agency. The BPK concluded that BI had not given the latest data about the Century Bank making the bailout funds to increase from Rp632 billion to Rp6.7 trillion.