Indonesian bank head convicted for graft


Sabirin (C) is escorted by two policemen at Central Jakarta district court

Staff and wires

JAKARTA, Indonesia -- An Indonesian court in Jakarta has sentenced central bank governor Sjahril Sabirin to three years in jail for corruption.

The charges result from a long-running banking scandal that dates back to alleged graft and abuse of power at Bank Bali in 1999.

The scandal erupted over a $70 million fee Bank Bali paid to a firm with links to the then ruling Golkar party.

Prosecutors had demanded Sabirin be sentenced to four years jail.

Most lawyers and analysts had expected Sabirin to be acquitted over a case that until now has not seen a conviction, and which emerged long before President Megawati Sukarnoputri's pledge to crack down on corruption.

Sabirin is still in charge of the institution as an appeal process has yet to take place, a senior official has told Reuters reporters.

Sabirin, who was not taken into custody, himself said he would appeal. When asked by reporters if he would resign, he said a "final" legal decision was needed first.