City Police to probe fraud at HongkongBank
City Police to probe fraud at HongkongBank
JAKARTA (JP): The City Police has assigned a number of senior detectives to investigate a massive fraud at the branch office of HongkongBank here.
The police said yesterday that it will also cooperate with Interpol in other Asian countries to probe the fraud, which might involve international crime syndicates.
Sources at the police office here said the police had arrested a man identified as HW for his alleged role in the fraud, which involved funds of around Rp 100 billion (US$45 million).
The sources said HW had managed to withdraw the money from Bank Modern, one of three banks through which the HongkongBank transferred the funds.
The man was arrested when he was withdrawing the money in the second bank, the sources, who refused to be identified, told The Jakarta Post.
The third bank still holds the fund.
However, the alleged key figure in the fraud is identified as Hdr, a holder of a Philippine passport, the sources said.
City Police spokesman Lt. Col. Iman Haryatna refused to comment on the arrest.
"For the time being, I have nothing to say to the press," Iman said when he was asked for confirmation. "We hope the press people will understand if we don't give any detailed information at this stage," he added.
Leila Djafaar, the HongkongBank's public relations manager, said yesterday that the fraud occurred early this month.
"Our supervisory section discovered a fraud at our main branch in Jakarta. And we have reported the case to the authority," Leila told the Post.
She said that the fraud is still under investigation of both Bank Indonesia, the central bank, and the police.
Senior executives of the central bank, however, refused to make any comments on the fraud.
"The executives are too busy to make any comment on the HongkongBank case," a Bank Indonesia official told journalists, who had been waiting for hours to get explanation from the central bank officials.
Leila did not disclose the total of the funds involved in the fraud. But the police said that it may reach over Rp 97 billion (US$44 million).
According to earlier reports, the fraud occurred on Jan. 5 through a fake transaction, which ordered the HongkongBank to transfer nearly Rp 100 billion to three private banks in Jakarta.
Leila ensured that the fraud will not cause a significant impact on the HongkongBank, saying that the bank remains in sound condition.
HongkongBank, a subsidiary of the Hongkong and Shanghai Banking corporation Ltd, started operations in Jakarta in 1864. Currently it has five branches outside Jakarta -- in Surabaya, East Java, in Bandung, West Java, in Semarang, Central Java, in Medan, North Sumatra, and Batam, Riau.
As of last June, HongkongBank Indonesia booked total assets of Rp 2.05 trillion (US$893 million at current rate), up from Rp 1.4 trillion in June 1994. (rid/hen/bsr)