Asabri scandal involves generals, businessman

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)