Indonesia's Corruption Eradication Commission (CEC) has criticised Bank Indonesia for ignoring letter of credit (L/C) irregularities at Bank Century, which had to be bailed out earlier this year.

The central bank has also been criticised for not disclosing information it knew about Bank Century in discussions that led to the bailout.

Possible crimes

The CEC says it has identified at least three possible crimes and an administrative violation in the bailout process.

A CEC spokesman said money laundering, corruption and administrative failures could all feature in future investigations.

Criticisms

So far, the investigators have unearthed what they describe as the irregular issue of letters of credit (L/Cs).

The CEC also says the central bank ignored Bank Century's purchase of dubious foreign-denominated securities and failed to question its use of inter-bank loans.

The investigators are particularly critical of Bank Indonesia officials who they allege intentionally kept quiet about their knowledge of malpractice at Bank Century during talks that led to the government's approval of a US$670 million bailout.

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