Ex-president of Jamsostek in detention

Ex-president of Jamsostek in detention

Ridwan Max Sijabat and Eva C. Komandjaja, The Jakarta Post, Jakarta

The Interdepartmental Anticorruption Team has decided to extend
the detention of Ahmad Djunaidi, a key suspect in an alleged
graft case at state insurance company PT Jamsostek, a senior
official said.

"It has been confirmed that we will detain him tonight, but I
have not yet read the arrest warrant, it should have been
prepared by Indarto (deputy head of the team)," team chairman
Hendarman Supandi told reporters on Monday.

Djunaidi, a former president of the government-owned worker's
insurance company, grabbed headlines last week after he managed
to fly overseas despite being slapped with a travel ban.
Attorney General Abdul Rahman Saleh lambasted the immigration
office for allowing the graft suspect to leave the country and go
to Saudi Arabia.

Minister of Justice and Human Rights Hamid Awaluddin admitted
that mistakes were made by the immigration officers, and vowed to
investigate the case. Under pressure from both he public and the
government, the immigration officers in Jeddah managed to track
down Djunaidi and forced him to return to Jakarta on Sunday.
Upon arrival, he was directly taken to the National Police
headquarters for questioning.

Djunaidi and former director of investment Andi Alamsyah (who
is also in detention) have been declared suspects in the graft
case, which centers on investment blunders made by the company
during their leadership, causing the state to suffer some Rp 250
billion (US$26.3 million) in losses.

They could be charged under Anticorruption Law No. 31/1999,
which carries a maximum penalty of life in prison.

The two have denied all the allegations, saying the investment
deals were conducted in accordance with existing procedures.

Meanwhile, the new directors of Jamsostek, which has been a
fertile ground for corruption, has urged the Interdepartmental
Anticorruption Team to investigate all alleged graft cases in the
company to make it healthier in the future.

"The newly appointed directors have thrown their weight behind
the government's war on corruption within government agencies and
state enterprises, especially the large number of graft
allegations within Jamsostek, to win the hearts of the people and
help the government's development programs to improve social
welfare," Jamsostek's president director Iwan P. Pontjowinoto
said after a ceremony on Monday.

Iwan added that he and his aides had called on the
anticorruption team not only to investigate the current cases
that have implicated his predecessor Achmad Djunaidi, but also to
reopen old ones that involved many other former officials and
caused huge amounts of state losses.

"The new directors have appointed two senior officials to work
closely with the Timtas Tipikor (interdepartmental anticorruption
team) to probe into all the irregularities since the company was
officially established 28 years ago. This investigation has to be
completed this year, so that we can work calmly and seriously as
of January," he said.

However, Iwan said that they would still comply with the
presumption of innocence principle, and so Jamsostek would
provide legal aid for all its officials, current or retired,
implicated in graft cases.

"We will provide legal aid, including legal consultants and
defense lawyers, to accompany all suspects until they are found
guilty, or acquitted of charges," he said.