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The audit of the Supreme Audit Agency (BPK) that was submitted to the People's Representative Council (DPR) today reveals stunning results. Transparently, the audit reveals the 'sins' of Bank Indonesia (BI), Minister of Finance, and the The Financial System Stability Committee (KSSK), in deciding Century Bank have systematically ruined the recovery and its rescue scheme.The audit was published by the head of BPK, Hadi Poernomo, at the DPR building.The first fault is the lax monitoring by BI in the acquisition and merger of Danpac Bank, Pikko Bank, and CIC Bank into Century Bank. BI was considered lenient in setting the regulations.

Aside from that, BI was infirm regarding the violations committed by Century Bank in 2005-2008. BI was suspected of changing the requirements of Capital Adequacy Ratio (CAR) in the Bank Indonesia Regulations (PBI) to acquire a short-term financing facility (FPJP). BI gave the FPJP although Century Bank's CAR at that time was negative 3.53 percent and the collateral value of the FPJP agreed was only 83 percent.

"BI was also considered not giving the whole and most recent truth when establishing Century Bank as a failed bank that affected the system on the KSSK," said Hadi.

The information was also incomplete regarding the Loss Statement (PPAP) of valuable notes (SSB) of foreign exchange that caused an equity flop that also lowered the CAR and increased the handling cost that was at first estimated as much as Rp. 632 billion into Rp. 6.7 trillion.

BI and KSSK also didn't have a measurable criteria in determining the system effect from Century Bank. The decision was based on a judgement without proper measurable calculations. And more surpising yet, Hadi said that the Coordination Committe institution that included the Minister of Finance, the Governor of BI, and the head of the Deposit Insurance Corporation (LPS) has never been arranged in the Law so its legal status is in question.

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