Bank employee, housewife arrested in Rp 1.5b scam

JAKARTA (JP): A state-owned bank in Central Jakarta was hit by bogus transfer orders with a combined value of Rp 1.5 billion (US$612,244) issued between 1993 and 1995, a police officer said yesterday.

A bank employee and a housewife allegedly involved in the scam, identified respectively as IL and MR, were being detained by police, City Police spokesman Lt. Col. E. Aritonang said.

He declined to name the bank in fear of ruining its credibility.

"IL made the orders look as though two banks in London, England, transferred money to the bank, where he works in the transfer division," Aritonang said.

He said the two made away with the money through at least 10 transfer orders from the state bank to four other banks in Jakarta.

"He then transferred some of the bogus money to different accounts at three of its branches and another state bank. The money was then cashed later by MR," he said.

Chief detective of economic affairs Lt. Col. Saud Usman Nasution said yesterday that IL was arrested Tuesday at the bank's office on Jl. Imam Bonjol, Central Jakarta, while MR was arrested earlier in June at her house in Duren Tiga, South Jakarta.

Both IL and MR took 60 percent and 40 percent of the money, respectively. A part of the money was kept in American dollars and British pounds, Nasution said.

He said that based on the suspects' confession, MR's duty was to locate people who were willing to receive IL's remittances to their accounts at three bank branches on Jl. Rasuna Said, Jl. Falatehan and Jl. Soepomo, all in South Jakarta.

"IL also addressed some transfers to MR's private account at another state bank on Jl. Gatot Subroto, Central Jakarta," Nasution said.

He said it was simple for IL to authorize the transfers as he was just one of a few employees who knew the transfer codes and passwords to all bank divisions.

"IL was moved from the bank's transfer division to the general affairs division in late 1994, where he continued making bogus transfer orders until December 1995," he said.

IL was transferred by the bank's management for an investigation because they realized their bank had been robbed.

But the management, who was suspicious of IL's activities, did not take stern action against IL because no evidence was found, Nasution said.

The management also refrained from immediately reporting their findings to police because they were afraid the scam would hurt the bank's credibility, he said.

"So far, IL said that he was the only person at the bank who was involved in the scam," he said.

Nasution said police found it difficult to obtain information about IL from MR, who was arrested a month before police detained IL.

Later, MR confessed that her child, boyfriend and a friend were also involved in the scam by helping her collect the cash and deliver 60 percent of the money to IL, Nasution said.

He said the suspects confessed they used the money to support their family lives.

"Police are still investigating whether MR's Scottish husband was involved in the scam from overseas," Nasution said. (cst)