Tide may be turning against Century investigation

(News Terupdate) - A seeming reluctance by three parties initially pushing to investigate the Bank Century bailout may be down to the threat of past scandals being aired and the lure of political incentives, analysts say.

The deputy chairman of the House of Representatives’ inquiry committee into the bailout, Mahfudz Siddiq from the Prosperous Justice Party (PKS), said Tuesday that after further investigations, the party had not found any indications of corruption in the disbursement of the bailout.

“In terms of the disbursement, most of the indications point to banking crimes,” he said.

Committee member Muhammad Romahurmuziy, from the United Development Party (PPP), said his party regarded the bailout disbursement as symptomatic of the mismanagement plaguing the bank, which he added had continued after it was re-branded as Bank Mutiara.

On Monday, Asman Abnur, the chairman of the National Mandate Party (PAN) at the House, said it
was possible the inquiry committee’s final conclusion could differ substantially from its preliminary finding of high-level graft.

Should the change in tone by the PKS, the PPP and the PAN indicate the three Muslim-based parties have switched sides on the committee to join President Susilo Bambang Yu-dhoyono’s Democratic Party and the National Awakening Party (PKB), the pressure from the Century fallout would be off the government, analysts say.

These five parties have a combined 317 out of 560 seats at the House.

During the airing of the House committee’s preliminary findings on Feb. 9, only the Democratic Party
and the PKB said the Rp 6.76 trillion (US$716 million) bailout had been warranted.

The U-turn by the three parties might be linked to the government’s efforts to dig up dirt on high-ranking politicians from parties seen as thorns in the administration’s side, the Indonesian Survey Institute’s (LSI) Burhanuddin Muhtadi said.

Burhanuddin pointed out the recent case of Yudhoyono ordering police to get tough on corporate tax evasion, a high-profile issue in which companies partly owned by Golkar Party chairman Aburizal Bakrie’s family have been implicated.

Golkar House chairman Setya Novanto was also recently reported to the police for alleged graft in a rice procurement project in 2003.

“The recent developments show Golkar will likely stick to its guns in shouting down the bailout, regardless of the pressure,” Burhanuddin said.

“However, these machinations will force other parties in Yudhoyono’s coalition to ease off and show some sign of loyalty,” he said.

The moves also show that coalition members hope the President kicks Golkar out of the alliance, he said.

Inquiry committee member Agun Gunanjar Sudarsa, from Golkar, said his party was oblivious to the supposed muckraking.

“How can we back down from our stance if our chairman tells us to stay the course no matter what happens?” he said Tuesday.

Analysts believe the party is pushing the envelope to try and build public support ahead of the 2014 elections.

The committee’s deputy chairman, Gayus Lumbuun from the Indonesian Democratic Party of Struggle (PDI-P), said external pressure and threats targeting individual legislators would not work.

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