Tue, 12 Jul 2005

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.