Ex-Jamsostek president quizzed

Eva C. Komandjaja, The Jakarta Post, Jakarta

Former president director of state-owned insurance firm PT Jamsostek Ahmad Junaedi was questioned at the National Police Headquarters on Monday in connection with the alleged misuse of Rp 250 billion (US$26.3 million) in workers' money.

Junaedi was questioned for 10 hours as a witness regarding the Rp 100 billion investment the state company made in now-defunct Bank Global. The bank's former president director Irawan Salim and operational director Rico Santoso are wanted men after both fled police in December.

Anticorruption director at the National Police headquarters Brig. Gen. Indarto told The Jakarta Post there was always a possibility the police would name Junaedi as a suspect.

"He was the president director. Commonly it was a president director who signs all investment documents and agreements. We will continue questioning him on Tuesday," said Indarto, who is also the deputy chief of the interdepartmental anticorruption team.

Junaedi led the company when it placed a Rp 100 billion investment in bonds issued by Bank Global and another Rp 105.5 billion in a company identified as PT SIP and channeled a Rp 49.2 billion loan to a company identified as PT V.

Police investigators have named former investment director Andi Alamsyah and detained him as he was considered responsible for the investment deals.

According to Presidential Decree No. 28/1996 on Jamsostek investment, any investment worth over Rp 25 billion requires approval from the company's president director and finance director.

Police found in their investigation that an analysis report from Jamsostek's investment research division had not recommended the investment in Bank Global, but Alamsyah ignored it.

Indarto said there could be more suspects declared in the Jamsostek case as the investigators had yet to question people from the companies that had received the Jamsostek money.

The alleged scam at Jamsostek is one of five graft cases in government institutions and state enterprises currently being investigated by the team.

The other cases involve state oil and gas company Pertamina, state telecommunications firm PT Telkom, state electricity company PLN and the Ministry of Religious Affairs.

Jamsostek manages Rp 33 trillion in social security programs for 24 million workers in the country.