Executives get two years in jail for fraud
Executives get two years in jail for fraud
JAKARTA (JP): A judge at the West Jakarta District Court
sentenced company executives Tansri Benui, alias Tan Beng Hoei,
and Soesanto Leo on Monday to two years in jail each for
defrauding Bank Prima Ekspress.
The two men, respectively president director and managing
director of CV Wira Mustika Indah, obtained credit from Bank
Prima Ekspress.
"The two defendants are proven guilty of providing fictitious
documents to the bank for an import agreement with it," presiding
Judge Suratno said while reading the verdict.
Suratno said both convicts violated article 378 of the
Criminal Code on swindling, which carries a maximum sentence of
four years in jail.
The jail terms were the same length as the terms demanded by
Prosecutor Dedy S. Harahap in a previous hearing.
Suratno said the company asked for credit in Nov. 1995 from a
syndication of 13 banks led by Bank Prima Ekspress.
The credit term lasted until Aug. 1997. The company then
proposed an extension until Aug. 1997. The request was approved
by the bank.
The Jakarta Prosecutor's Office said in a statement that
several banks belonging to the syndication were now under
government supervision, including, among others, Bank Umum
Nasional, Bank Lippo, Bank Bali and Bank Dharmala.
"The credit was intended to finance the import of wire-rods
from Singapore-based Triniaga Enterprise Singapore," said
Suratno.
Triniaga Enterprise was owned by Tan Saridju Benui, Tansri
Benui's son, said Suratno.
The judge said Tansri submitted a letter of credit application
to Bank Prima Ekspress to import the wire-rod from Singapore on
Oct. 15, 1997.
The letter of credit amounted to US$668,337.38 (Rp 4.8
billion), Suratno said.
"After receiving the letter of credit documents from Tansri,
Bank Prima Ekspress paid the money in to the Bank of New York's
Singapore branch to allow the Bank of New York to transfer the
money to the exporting company Triniaga Enterprise Singapore,"
said Suratno.
Bank of New York got hold off the money by debiting Bank Prima
Ekspress' account, said Suratno.
Suratno said the defendant also obtained a bill of landing
through the International Netherlands Bank to allow Bank Prima
Ekspress to disburse the letter of credit.
"But, the bill of landing was fictitious," said the judge.
Suratno said the defendants mentioned in the credit document
that the wire-rods would be shipped from Singapore to Jakarta
onboard the Gang Qiang.
"But it remained a promise, and the wire-rod never reached
Tanjung Priok Port," said the judge, adding that the crime had
brought losses to the bank of US$668,337.38.
Suratno said Bank Prima Ekspress had demanded the company
settle the debt, but it had failed to do so.
"Both defendants have contributed to the collapse of the
country's economy," said the judge, referring to the ruin of
dozens of banks due to bad debts.
The two men said they were considering filing an appeal to the
Jakarta High Court. (asa)