Indonesian central bank chief detained in graft case

11 Apr, 2008

Indonesia's anti-graft agency detained outgoing central bank governor Burhanuddin Abdullah over a graft case on Thursday, the agency said, the latest twist in a high-profile case that has hit morale at the battered bank.
Abdullah, whose five-year term ends on May 17, and two of his colleagues are suspects in a case where a foundation linked to Bank Indonesia had illegally paid members of parliament. Abdullah has denied any wrongdoing.
The news did not have any significant market impact, with stocks ending up and the rupiah largely stable. Scores of high ranking officials have been detained amid President Susilo Bambang Yudhoyono's fight against graft in a country consistently rated as one of the most corrupt in the world. "It's true that we have detained the central bank governor at the police headquarters for 20 days since today," Johan Budi, a spokesman for the country's anti-graft agency, also known as the Corruption Eradication Commission (KPK).
Abdullah was detained after around 6 hours of questioning at the anti-graft office. He smiled to reporters but did not give any comments. A central bank spokesperson said senior central bank deputy governor Miranda Goeltom will be acting governor if Abdullah is unable to do his job.
"The board of governors of Bank Indonesia regret and is saddened by the detainment of our leader, governor Burhanuddin Abdullah, as well as two other senior officials Rusli Simanjuntak and Oey Hoey Tiong who have already been detained by the KPK," the central bank said in a statement.

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