No need to suspend Boediono, Mulyani: SBY

SBY PRESIDENCY. The embattled VP and Finance Minister have finally got the first visible support from their President, who said Friday in Copenhagen that it was "unnecessary" for them to step down temporarily while lawmakers looked into the controversial bank bailout.

On the sidelines of the UN world summit on climate change, President Susilo Bambang Yudhoyono ordered Vice President Boediono and Finance Minister Sri Mulyani Indrawati not to follow the recommendation of the House of Representatives' committee of inquiry on Bank Century bailout, which called for their suspension.

The committee argued the suspension of the senior officials was necessary to facilitate the inquiry process into their role in the case.

Yudhoyono said, however, the move would be against the law.

"The Constitution doesn't recognize the suspension of a president or vice president. Article 7 of the Constitution only rules on the appointment and dismissal of the president and vice president.

"Our Constitution is clear on that," Yudhoyono said.

He added the 2008 State Ministry law gave no grounds for the suspension of Sri Mulyani.

"A minister can only be suspended if they are a defendant undergoing a trial and face possible imprisonment of a minimum of five years," the President said, citing an article in the State Ministry law.

Yudhoyono also said that he had been communicating with Boediono and Mulyani, both of who are in Jakarta, during which they told him that they could still undergo the inquiry process without having to leave their posts in the government.

"Thus I consider it is unnecessary to temporarily suspend the Vice President and the finance minister. I think we can agree the governance should not be disrupted.

"Also, we're still running our first 100-day programs, which are very important for the next five years of our government and for the prosperity of the people. I hope you all understand."

He closed his statements by calling for all parties to "respect the Constitution and the law", and to pay attention to the "rules of the game" in democracy.

Yudhoyono said he respected the recommendation made by the House special committee on the Bank Century case, but added they had to work within reasonable bounds and in an accountable manner.

The committee had included Boediono and Sri Mulyani in their list of public officials to be questioned for their key roles in the bailout process in November, 2008.

At that time Boediono was the governor of Bank Indonesia. The decision to bail out the ailing Bank Century was made based on official information from BI on Bank Century's real condition and possible consequences should the bank not be salvaged.

BI's official information was one of the main points of consideration in the Nov. 21 Financial Sector Policy Committee (KKSK) meeting led by Finance Minister Sri Mulyani. The meeting concluded with an agreement to issue a bailout package and an approval to disburse more than Rp 2 trillion in the first phase to the bank. Subsequently, the government, through the Deposit Insurance Agency (LPS), disbursed a total of Rp 6.76 trillion (US$716.56 million) to salvage the bank.

The Supreme Audit Agency's (BPK) audit report on the bailout process showed preliminary evidence of legal and regulatory violations in the bailout decision, with the House and the Corruption Eradication Commission (KPK) conducting their own investigation into the process.(thejakartapost)