Asabri scam suspect to face land debt suit

Asabri scam suspect to face land debt suit

JAKARTA (JP): Businessman Henri Leo, the main suspect in a Rp
410 billion (US$55.4 million) insurance scam at armed forces
insurer Asabri, is now in further trouble after his 38-hectare
plot in West Java, to be used to repay his debts, has been
claimed by another businessman.

Amir Syamsuddin, a lawyer representing businessman Frans
Widyarta, said his client would sue Henri if the latter provided
the land as part of a commitment to repay his debt to the
Ministry of Defense and Security.

Amir said the dispute was about the 38-hectare plot in Puncak
Simun of Cianjur regency, West Java, which Henri bought from
Frans. Henri has apparently not completed payment for the
property.

"He (Henri) is not allowed to surrender the 38-hectare plot
because he has not paid for it," Amir told The Jakarta Post over
the phone.

He said Henri bought the land from PT Santikagraha Wisesa,
owned by Frans, for about Rp 5 billion.

"I sent a warning letter to Henri on July 24, last year,
telling him to complete the payment.

"He has so far only paid about Rp 250 million. He still has to
pay the remaining Rp 4.75 billion, plus Rp 325.3 million
interest," he said.

Amir said that if proven guilty, Henri could be charged with
embezzlement, according to Article 372 of the Criminal Code,
which carries a maximum penalty of four years in jail or a fine
of Rp 900 (according to an old penalty system that has not been
updated).

Henri is surrendering all his assets, including the property,
to the Ministry of Defense and Security as a guarantee against
his alleged misappropriation of insurance funds.

Earlier on Friday, Henri said he was ready to return the
insurer's money.

"My client has assets worth at least Rp 800 billion to cover
the debt," Henri's lawyer, Ruhut Sitompul, said.

He was referring to a report of an audit by a team from state
Bank Negara Indonesia, conducted in mid-August.

Henri's assets, Ruhut said, included a late-model private jet
worth Rp 40 billion, Mega Mall Kuningan in South Jakarta, the 38-
hectare plot and several apartments in Hong Kong.

National Police spokesman Brig. Gen. Togar M. Sianipar said
last week that the investigation was focused on the suspected
role of Maj. Gen. (ret) Subardja, and Henri.

Asabri was headed by a board of Indonesian Military and police
officers, including Maj. Gen. Subardja. Subardja, also named a
suspect, was the official who approved disbursement of the loan
to Henri.

The scheme is based on deductions from the monthly wages of at
least 600,000 military and police personnel nationwide.

As reported earlier, the embezzled funds were deposited in
several time-deposit accounts at state bank BNI in 1994.

The time deposits were opened for varying periods, such as
three months, six months and one year, at different branches of
BNI.

They were from 1995 converted into promissory notes in Henri's
name, until the scam was discovered recently by a military
officer at the Ministry of Defense and Security. (ylt)