Another BRI boss sent to jail

Another BRI boss sent to jail

Sari P. Setiogi/Theresia Sufa, Jakarta/Bogor

Another former Bank Rakyat Indonesia (BRI) branch head was found
guilty on Tuesday of stealing Rp 93.5 billion (US$9.5 million) in
state funds and was sentenced to 17 years in prison.

Last week, former branch heads of BRI Segitiga Senen Deden
Gumilar Sapoetra and BRI Pasar Tanah Abang Agus Riyanto, were
sentenced to 16 years and six years in prison respectively for
misusing state funds amounting to Rp 180 billion.

Asep Tarwan, former head of BRI Surya Kencana Bogor, was found
guilty of channeling the money -- which came from an account of
PT Jamsostek -- as credit to PT Delta Makmur Ekspresindo (PT DME)
and PT Panca Prakarsa, without complying with proper procedures.

He was also fined Rp 250 million and was ordered to repay some
Rp 40 billion to the state.

The sentence was lighter than the prosecution's recommendation
of 20 years and a fine of Rp 83.6 billion.

The trial was held at the Bogor District Court, Bogor, led by
Judge Russedar, who asked the defendant to be sent straight to
prison after the trial.

Asep, wearing a blue shirt and black trousers, said he would
consider appealing the verdict.

Separately, prosecutors at the Central Jakarta District Court
recommended on Tuesday a 20-year prison term for Yudi Kartolo and
Hartono Tjahjadjaja, commissioner and director of PT DME
respectively.

"Both defendants were proven to have agreed to misappropriate
state funds. Together with the banks' branch heads and their
arrangers, they met several times to arrange the placement of
credit in their accounts," said prosecutor Aziz Husein.

PT DME is the company that was allegedly used as a vehicle to
take money from three BRI branches -- Surya Kencana Bogor,
Segitiga Senen and Pasar Tanah Abang.

Yudi and Hartono attended the court session at the start of
the trial but left later due to nausea. A letter signed by
general practitioner Yansen Sitorus said Yudi had an acute
digestion problem.

Prosecutors said Yudi and Hartono were proven to have at least
four meetings with BRI branch heads before the placement of each
deposit in the company's accounts in BRI.

Between July and September 2003, PT DME's accounts in the
three BRI branches received at least Rp 273 billion as "loans
with a high interest rate".

The money came from fixed deposit accounts, including those
belonging to PT Jamsostek and Bank Pembangunan Daerah of East
Kalimantan.

All account holders denied they gave permission to the BRI
branches heads to use their money.

Yudi is reported to be an old hand at orchestrating banking
fraud because of his alleged involvement in the Rp 1.1 trillion
Bank Negara Indonesia (BNI) case in 2001.