More banking fraud suspects detained<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
Two more persons implicated in the Bank Dagang Bali (BDB) and
\nBank Asiatic scandals have been detained by investigators,
\nbringing the number of suspects in police custody to five.<\/p>\n
The two suspects, both from BDB, are I Gde Wibawa (former
\ntreasury official) and I Nengah Suwardhana (former Jakarta branch
\nhead). They have been detained since Saturday.<\/p>\n
\"Based on our team's investigation, we detained them last
\nSaturday. So there are five detainees now and we're charging them
\nunder the banking legislation as well as the Criminal Code,\"
\nNational Police spokesman Brig. Gen. Soenarko said on Monday.<\/p>\n
The police have named nine former shareholders, directors and
\nmanagers of BDB and Bank Asia as suspects.<\/p>\n
Earlier, the authorities detained three other suspects -- FB
\nSurendro (former president director) and Made Budiana (former
\nfund marketing director) from Bank Asiatic, and I Gusti Ngurah
\nOka Budiana, the former chief commissioner of BDB.<\/p>\n
Soenarko said the police had also questioned the three other
\nsuspects, but had yet to decide whether they would be detained or
\nnot.<\/p>\n
\"They're all from Bank Asiatic ... Tong Muk Keung (majority
\nshareholder), Won Tommy Sentana (former marketing director), and
\nIgnatius Eddy Candra (former credit director). However, they're
\nobliged to report their movements to the police,\" he said.<\/p>\n
Soenarko did not elaborate why these suspects had not been put
\nbehind the bars yet. He also said that the status of a suspect
\ncould still change the investigation advanced.<\/p>\n
Bank Indonesia revoked the operating permits of the two banks
\non April 8 on account of their worsening financial conditions,
\nwhich were caused by what the central bank called fraudulent loan
\ntransactions worth Rp 1.2 trillion (US$139 million).<\/p>\n
The loans accounted for 70 percent of BDB's total assets of
\nonly Rp 1.7 trillion. Banking regulations stipulate that a bank
\nis allowed to lend a maximum of 10 percent of its total lending
\nexposure to affiliated companies.<\/p>\n
The government has provided Rp 2.39 trillion to cover the
\nfunds owed to the two banks' depositors as part of its blanket
\nguarantee program.<\/p>\n
At the time of closure, the Denpasar-based BDB had 31
\nbranches, 632 employees and 408,000 depositors, while the
\nJakarta-based Bank Asiatic had 150 employees and 2,200
\ndepositors.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/more-banking-fraud-suspects-detained-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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