Corruption allegation affecting tycoon Arifin

Corruption allegation affecting tycoon Arifin

JAKARTA (JP): Businessman Arifin Panigoro said on Sunday that
he was ready to cooperate with the Attorney General over
investigations into alleged corruption.

Arifin told a media conference at his home in South Jakarta
that he wanted the case settled quickly, and that he was "hurt"
and "concerned" by the "mental pressure imposed on our family"
regarding the allegations.

Inquiries are scheduled to begin on Monday at the Attorney
General's Office.

Arifin was accompanied by his lawyer Todung Mulya Lubis.

The owner of PT Medco Central Asia, part of the PT Medco
business group, was accused of corruption involving Rp 2 trillion
(US$230 million) related to state-owned insurance firm, PT
Jasindo.

The Attorney General's Office public relations officer Barman
Zahir said on Friday that in July last year PT Medco issued 27
commercial papers, one of which was bought by Jasindo.

Barman said that it turned out Medco could not pay up, meaning
that Jasindo was held responsible as the purchaser of the paper.

"In this case the state suffered a loss of Rp 2 trillion,"
Barman said as quoted by Bisnis Indonesia.

Arifin said he would even go to the Attorney General's Office
on his own initiative to help clarify matters.

A press release from Medco said that because of the regional
monetary crisis it could not settle all of its debts, but had
appointed internationally renown consultants such as Morgan
Stanley and Goldman Sachs "to ensure professional
restructurization" of its assets and financial situation.

Arifin added the business problems would be settled in a short
time by both parties.

Arifin said that as the charges were "baseless", the public
would easily get the impression that they were "political", which
Attorney General Andi Muhammad Ghalib denied Friday.

The businessman had his car and home stoned last month
by a group calling itself the People's Savior Front. The
protesters criticized Arifin for sponsoring student
demonstrations against the government, which Arifin has also
denied.

"I am an entrepreneur who cares a lot about reform, why would
I steal money in business. I am not that kind of entrepreneur, if
I were I would only expand my business. I am truly hurt by being
accused of corruption," he said emotionally.

Arifin said he might sue the Attorney General over the
corruption accusations, but would decide whether to take any
legal action after the examination. (01)