Thu, 18 Dec 1997

Businessman tried for bank swindle

JAKARTA (JP): Businessman Made Oka Masagung was indicted at the South Jakarta District Court yesterday for his role in the forgery of 36 promissory notes worth Rp 324 billion (US$56.3 million) endorsed by his bank, Bank Arta Prima.

Prosecutor Y.W. Mere said Masagung had ordered the bank's executives, identified as Chalid Aini, Marcel Maulana and Husni Ali Toyib, to sign the promissory notes at his home on Jl. Blok E in Permata Hijau housing complex, Kebayoran Lama, South Jakarta in May two years ago.

Prior to the signing of the notes, Masagung, who also owned the bank's holding company Gunung Agung Group, had planned to sell the bank since the holding company suffered debts worth Rp 174 billion, Mere said in his indictment.

He said the 40-year-old defendant was introduced to businessman Kim Johanes Mulia by a broker named Hanny Wicardy.

Kim agreed to buy the bank and suggested Masagung convert the debts to promissory notes, he said.

The president of PT Detta Marina also suggested the defendant release additional notes worth Rp 150 billion to make other investors disinterested in buying the bank, he said.

Mere said the notes, which were typed by Gunung Agung's finance director Hendricus Suhalim, were issued by nine of the group's subsidiaries.

He said the bank's three executives refused to sign the notes at first since it violated the Central Bank's regulation, but after meeting with Masagung, the executives agreed to endorse the notes.

The prosecutor charged Masagung under Article 49 (1) of Law No. 7/1992 on banking and Article 264 of the Criminal Code. The first carries a maximum punishment of 14 years in jail while the second eight years.

Presiding judge Sudadi adjourned the trial on Jan. 7 to hear the defendants' lawyers' statement.

Sudadi told reporters later that the court had decided to release Masagung on bail on the request of the defendant's wife and lawyers.

Masagung, who had been detained for seven months, also needed an immediate medical checkup. He suffered two strokes before the trial, Sudadi said.

He said Masagung's wife had also deposited a guarantee of Rp 100 million to the State Treasury for his release.

Sudadi said the bank's new owner, Artha Graha Group, who reported the case to police, agreed with Masagung to settle the problem amicably.

But outside the court Mere said the case could not be revoked although the bank's new owner rejected the report because it is a criminal case.

Kim, Hendricus, Marcel, Chalid and Husni are being tried in separate trials at the East, Central, and West Jakarta District Courts. (jun)