The central bank`s spokesman Difi A Johansyah said here on Tuesday Bank Indonesia had conducted special scrutiny to see if violations of rules had been committed.
"Based on the results of the investigation violations of banking internal regulations have indeed been done and weakness in the implementation of risk management has also been found," he said.
Sanctions that have been given to the bank include banning the bank to increase new Deposit on Call customers and extend the old membership including for other products such as Negotiable Certificate of Deposit (NCD) for a year and to open a new office for a year as of May 24, 2011.
Difi said Bank Indonesia would also conduct a fit and proper test on the bank`s management and executive officials and instruct the bank to review all its policies and procedures especially on its funding activities including target setting, limits and authority for branch offices, assisting branch offices, cash service offices and individuals in nominal and interest terms, regulation of working areas and mechanism of initiating a new customer.
Bank Mega is also required to improve its internal control functions and risk management including meeting the needs of auditors in every office, checks and balances whether it is done through authority stages or a system, supervisory functions of the central office on lower offices and the principles of knowing your employees.
Bank Indonesia has also compelled Bank Mega to fire its employees below executive levels found involved in the case of PT Elnusa and the Batubara district administration funds in its branch office in Jababeka, Bekasi, West Java.
The central bank has also asked Bank Mega to immediately open an escrow account worth as much as the lost funds of PT Elnusa and the Batubara District administration.
The account may only be disbursed with an approval of Bank Indonesia after the dispute between the bank and its customers are settled through a court ruling and deals between parties.
Difi said the moves taken by Bank Indonesia were part of the central bank`s efforts to protect bank customers and credibility of banking industry in the country.
(Uu.H-YH/HAJM/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2011
