Jakarta, IO – Mayapada Bank is embroiled in a scandal involving illegal access to bank credit. The allegation points to businessman Ted Sioeng, who is suspected of receiving a working capital facility of IDR 1.3 trillion from 2014 to 2021.
When Ted Sioeng eventually went bankrupt, a police report was lodged, accusing him of not fulfilling his obligations to the Bank.
In his interrogation, Ted Sioeng revealed that the owner of Mayapada Bank, Dato Sri Tahir, always received a “cut” of every bank loan the businessman was granted, totaling IDR 525 billion.
This practice clearly violates banking regulations and the law, because it is plain bribery, a kickback for each loan granted. Ted Sioeng’s admission of having bribed Mayapada Bank’s owner in order to receive a bank loan should have led to the bank owner losing his position, being prosecuted and in fact the bank’s closure.
OJK urgently needs a proper bank monitoring system
As an agency that supervises banking in Indonesia, how is it that the Financial Services Authority (OJK) did not detect this malfeasance beforehand? Did OJK fail in its duty to conduct good governance and prudent supervision? Or was OJK reluctant to move, because Mayapada Bank’s owner is also a member of the Presidential Advisory Council?
OJK, as a microprudential banking authority, should have executed its duties properly in uncovering bribery, in its oversight of the bank’s credit practices.
If OJK is truly impartial, Ted Sioeng’s confession must be thoroughly pursued, because such a practice might severely tarnish the credibility of Indonesia’s banking reputation. The stained banking image will have contagion effects that could even jeopardize the stability of our banking system.