Big fraud case revealed in Papua

Nethy Dharma Somba, The Jakarta Post, Jayapura

An organization called the Kimani Foundation has been accused of defrauding 1,531 Papua residents out of Rp 765.5 million (US$76,550), making it the largest ever financial fraud case reported in the province.

The executive director of the foundation, Wolter W. Oijaitouw has been arrested in the case.

Wolter allegedly traveled to villages in Papua, telling residents the Jayapura-based foundation was working with a foreign philanthropic organization to provide educational aid to Papuans.

Residents were told they would receive a total of Rp 15 million in aid, but first had to fill in a registration form and pay a fee of Rp 500,000 per person.

Linus P. Ovay, 26, a palm oil farmer in Arso near Jayapura, said he paid Rp 500,000 to Wolter in February.

"I believed him because he gave me a receipt after I gave him the money. On top of that, the foundation has an office in Jayapura," said Linus on Wednesday.

Linus said he went to the foundation's office in March and demanded his money, but Wolter told him to be patient.

"When I went back the next month, he just told me the money had not been transferred to him by the foreign organization," said Linus.

Linus eventually discovered that hundreds of other people had paid Wolter money for educational aid that was not forthcoming.

He and dozens of other people traveled to Jayapura Police Headquarters several days ago to report the case, prompting the police to arrest Wolter.

Jayapura Police chief Adj. Sr. Comr. Paulus Waterpauw confirmed that Wolter was in police custody, saying he would be handed over to prosecutors as soon as his case file was completed.

According to the preliminary investigation, Wolter collected money from 1,531 Papua residents, said Paulus.

If convicted, he could face up to five years in prison for fraud.