Indonesia detains two former c.bank directors

Mulyohardjo, spokesman for the Attorney-General's office, said Hendro Budiyanto and Heru Supraptomo were detained on Feb 26 and were being held in a cell at the office. They were suspected of misusing their authority in the extension of billions of dollars in loans to ailing banks during the Asian financial crisis, he said. "There is sufficient evidence and also fears that they might run away," Mulyohardjo said in explaining the arrests.

The Attorney-General has been probing the central bank's disbursement of 144.5 trillion rupiah ($14.7 billion) to banks at the height of Indonesia's economic crisis in the late 1990s. The relief credits, many of which were extended to banks with links to disgraced President Suharto, were a largely failed attempt to keep the banking system from collapse.

A report by Indonesia's Supreme Audit Agency has shown most of the money might have been mismanaged and there have been widespread accusations of corruption over the loans.Some central bank officials have said they had to issue the loans because of pressure from Suharto, who stepped down in disgrace in May 1998 as the economy collapsed around him.