Bailout reported to vice president on 25 November

January 14th, 2010 | by rarzi |

Former chairwoman of the Financial System Stability Committee (KSSK) Sri Mulyani said she reported to then Vice President Jusuf Kalla on the Bank Century bailout decision on November 25, 2008, not on November 22, 2008.

“I reported to the vice president (Jusuf Kalla) on November 25, 2008,” Sri Mulyani said in reply to a question raised by Andi Rahmat during a House inquiry session here on Wednesday.

Previously, in a letter of KSSK secretary Raden Pardede it was said that the KSSK chairwomen reported the KSSK decision to bailout the bank to the vice president on November 22, 2008.

Sri Mulyani, who is also the finance minister, was questioned on Wednesday by the a house inquiry committee which is investigating the government`s decision to provide a bailout of Rp6.7 trillion for Bank Century in late 2008.

Whe asked earlier about when she reported the decision to President Susilo Bambang Yudhoyono, Sri Mulyani Indrawati said that she submitted a written report to the president on November 22, 2008.Besides, the minister said she also reported to decision to Jusuf Kalla.

But when the inquiry committee member asked the correct date on which the report to Kalla was made, whether on November 22 or on November 25, Sri Mulyani said it was reported to the then vice president on November 25, 2008.

“On November 22, 2008 (we reported to the president through a letter and its copy to the vice president,” she said.Sri Mulyani also said she had reported informally to the vice president.

Andi Rachmat showed a letter from Pardede which mentioned that the report was made on November 22, 2008.

“So, the date mentioned in the KSSK secretary letter on November 22, 2008 is wrong, or being misstyped?.” Andi Rachmat asked.

Sri Mulyani answered: “No. The report to the vice president was made on November 25, 2008.”

Bank Century collapsed after its assets worth about Rp11 trillion were flown and stashed overseas by its owner Robert Tantular.

When the decision was made President Yudhoyono was overseas but then vice president Jusuf Kalla who was at home at that time said Sri Mulyani did report the decision to him on November 22, 2008.

Kalla described it as a `robbery` by its owner, thus it did not deserve a bailout.
The government, in this case the KSSK, decided to provide the bank with a bailout of Rp6.7 trillion.