Fri, 20 Aug 1999

Asabri scandal involves generals, businessman

JAKARTA (JP): National Police detectives are investigating an alleged Rp 410 billion (US$55.4 million) insurance fraud at the military and police insurer which suspectedly involved three generals and a businessman, an officer said on Thursday.

National Police spokesman Brig. Gen. Togar M. Sianipar said the investigation of malfeasance at Asabri was focused on the suspected role of a two-star general and the businessman.

As with many cases involving high-ranking military figures, Togar refused to fully identify the suspects.

He identified the businessman by the initials HL and the two- star general as Maj. Gen. Sub.

A source said that the two other figures under investigation were four-star military generals who retired recently but continued to hold political influence.

According to Togar, only HL has been banned from leaving the country pending results of the ongoing probe.

"The travel ban for HL was issued last week. As long as he remains a suspect in this case, he won't be allowed to leave the country until the investigation is over," Togar told The Jakarta Post.

He said repeatedly that he lacked data on the investigation.

However, Togar said HL worked in an office at the Mashill building.

"The Asabri insurance scheme is headed by a board of the Indonesian Military and police officers. One of the board members is Maj. Gen. Sub, who's one of the suspects," Togar said.

"He has not been detained so far."

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

The fund, he added, was said to have been deposited in several accounts at state BNI 46 bank before allegedly being embezzled by Sub in 1994.

Togar added that he did not have any more information about the investigation, which he said was only a week old.

"Please don't ask me anymore. What I know, I already told you," he said.

Interest

Other police sources said HL was summoned to the National Police Headquarters for questioning last Friday.

During the questioning, a source said, HL claimed he could not return the money because of the poor performance of his businesses.

"Even the interest on the funds since 1994 is already gone," one of the sources said.

The source added that Sub opened several time deposit accounts in 1994 for varying periods, such as three months, six months and one year, at different branches of BNI 46.

The deposits were then converted into promissory notes in HL's name from 1995 until the embezzlement was discovered recently.

It remains unclear how the fraud was uncovered and who reported it to the authorities.

The sources speculated that executives from BNI 46 were probably involved in the scam.

"How could the time deposits under the name of SU be changed into promissory notes under the name of HL (without collusion of bank officials)?" a source said.

The bank's executives could not be reached for comment on Thursday.

The sources said that the investigation might be prolonged or quietly buried because of the alleged involvement of two four- star generals.

"Sub, for example, should have been detained today (Thursday), but he was instead summoned by officials of the Ministry of Defense and Security," one of the sources said. (ylt)