Businessman tried for bank swindle

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)