Eddy busted over lottery fraud

Abdul Khalik, The Jakarta Post/Jakarta

The Jakarta Prosecutor's Office said on Friday it had detained PT Sari Kebon Jeruk director Eddy Yowono on charges of embezzling Rp 40 billion (US$4.25 million) from the Social Welfare Foundation, the former operator of a sports lottery.

Farried Harjanto, the head of the intelligence unit at the prosecutor's office, said Eddy had been detained at Salemba Penitentiary in Central Jakarta since April 4.

"We are detaining him pending the completion of his case file ... it will soon be ready to be submitted to the court, maybe in one or two weeks," he told The Jakarta Post.

The foundation's chairman, Mashud Wisnu Saputra, reported Eddy to the police in 2002 for allegedly embezzling money from the lottery in the early 1990s.

The lottery was later outlawed, along with all forms of gambling.

Former city police chief Insp. Gen. Makbul Padmanegara ordered Eddy's detention in 2002 at the start of the investigation, but the suspect was released after a high-ranking official in the city administration intervened on his behalf.

The police continued to process the case and recently submitted it to prosecutors.

Eddy's company was recently appointed by the city administration to handle the renovation of Tanah Abang market, which was heavily damaged in a fire.

The renovation is underway despite protests by traders and residents, who claim the project has caused flooding in the area.