Central Bank Governor Sjahril Sabirin is facing a possible four year imprisonment for allegedly being involved in corruption linked to the Bank Bali scandal, which led to government losses of some Rp 904 billion (US$96.2 million).
Sjahril was also ordered to pay a Rp 30 million fine.
Prosecutor Y.W. Mere told the trial at Central Jakarta District Court on Wednesday that Sjahril had abused his authority as the governor of the central bank in approving the loans of the Indonesian Bank Restructuring Agency (IBRA) to Bank Bali.
Bank Bali had asked for the money as payment for its loan to Bank BDNI, the now-defunct private bank, which was unable to repay its debts when it was taken over by IBRA.
"The central bank's approval was bizarre, considering that in a meeting at Mulia Hotel on February 11, 1999, it consistently rejected Bank Bali's request for the fund," Mere said, before the hearing, presided by judge Subardi.
