Bank fraud suspect avoids police questioning

Bank fraud suspect avoids police questioning

P.C. Naommy and Wahyoe Boediwardhana, The Jakarta Post,
Jakarta/Denpasar

Tong Muk Keung, a suspect in a bank fraud involving the now
defunct Dagang Bali (BDB) and Asiatic banks failed to appear for
questioning at the National Police headquarters on Wednesday.

National Police Deputy Spokesman Brig. Gen. Soenarko D.
Ardanto said police were carrying out a search for the suspect
and had put him on their wanted list.

On April 18, the police issued a list of nine suspects,
including Tong, for their alleged roles in the bank fraud.

The suspect's lawyer, Hotman Paris, had earlier confirmed on
Monday his client would appear for questioning as requested by
the police. Tong was a majority share holder of Asiatic Bank.

Hotman said on Wednesday his client's name should no longer be
on the police wanted list. Tong had already submitted a power of
attorney letter to the police expressing his willingness to
cooperate with their investigation, Hotman said.

Hotman said his client did not appear for questioning on
Wednesday because police had not yet questioned BDB and Asiatic
directors.

As Tong's lawyer, Hotman went to police headquarters to
provide background information on the case, which included
information about other parties (outside the nine named suspects)
who could have been involved in the fraud, he said.

"We also suggested the police first interrogate the company
directors before questioning share holders," he said.

Hotman said as a share holder, his client was not involved in
the bank's daily decision-making.

The police, he said, should focus their interrogation on the
suspects from BDB. All the allegedly fraudulent transactions and
nonperforming loans came from BDB, not Asiatic, he said.

Tong has been charged under Law No. 31/1999 on corruption and
Article 50a of the Banking Law No. 72/1992, which carry a maximum
sentence of seven years in jail.

Also on Wednesday, a meeting in Denpasar between
representatives of BDB's employees and management revealed the
bank lacked enough funds to provide the severance payments to its
employees required by law.

The meeting, held at the Bali manpower office, was attended by
AA Sudiptha Panji for the employees and I Gusti Ngurah Oka
Udayana for management.

During the meeting, Sudiptha asked management to set severance
pay at five times the basic salary.

To meet this demand, BDB management said they would have to
find Rp 30.4 billion (US$3.6 million).