Wed, 01 Oct 1997

Deceit report still under investigation

JAKARTA (JP): Police are still investigating a report lodged by a Singaporean businessman that his local partner has deceived him in a deal to transport rice from Vietnam to Indonesia.

City Police Spokesman Lt. Col. E. Aritonang said yesterday that the police questioned the Indonesian businessman, Ariffudin Tangka, last week and found no evidence to charge him.

"However, the investigation will continue," Aritonang said. "And, we'll close it only after we are certain there are no indications of a crime here."

According to Aritonang, Singaporean businessman George Sten reported to the Jakarta police early last month that Ariffudin had failed to pay harbor handling charges worth US$529,569 (about Rp 1.5 billion) to his company, Sea-Bliss Pte. Ltd.

Sten, his partner Michael Lwee and Ariffudin had been involved in a business deal to deliver around 70,000 tons of rice for the National Logistics Agency between 1995 and 1996, he said.

"A reckless handling of the shipping documents at the Belawan port in North Sumatra capital of Medan resulted a delay in the unloading, which meant Sea-Bliss had to pay $529,569 to the harbor management," Aritonang said.

Sten billed the National Logistics Agency for the fee and the latter agreed to pay it through Ariffudin, he said.

Sten then reported Ariffudin because the Indonesian never gave him the money, the police spokesman said.

Aritonang also denied media reports that Ariffudin had been arrested at his home in Ciganjur, South Jakarta, last Friday.

"Police have never arrested him as a suspect in this case," he said.

Ariffudin, who also attended the meeting yesterday, denied all the allegations made by Sten. "That's not true. I paid the money to Sten's partner Michael Lwee in 1996. This was confirmed by Lwee a few days ago."

"But I will sue Sten for having defamed my name and reputation," he said. (cst)