Former CEO named suspect in Jamsostek scandal

Former CEO named suspect in Jamsostek scandal

Eva C. Komandjaja, The Jakarta Post, Jakarta

Former president director of state insurance firm PT Jamsostek
was named a suspect on Tuesday after four successive sessions of
questioning in connection with the alleged misuse of over Rp 250
billion (US$26.3 million) in workers' money.

Head of the interdepartmental anticorruption team Hendarman
Supandji identified the suspect by his initial as AD, who he said
was a former member of the company's board of directors.

A source from the National Police Headquarters, where the
questioning took place, said the suspect was Ahmad Djunaidi, who
was the president director of the company when the alleged graft
occurred.

"We named him a suspect because he violated a decision taken
during a stakeholders meeting not to invest in medium term notes.
But he did otherwise," Hendarman said.

The investigators, however, did not order the immediate
detention of Djunaidi, who failed to turn up for a fifth round of
questioning on Tuesday.

Hendarman said the investigators had rescheduled the suspect's
questioning for Thursday.

The team has named the company's former investment director
Andi Alamsyah a suspect in the case and is detaining him to
facilitate the investigation.

The suspects are accused of causing losses to the state
through their decision to purchase Rp 100 billion in bonds issued
by the now defunct Bank Global and another Rp 105.5 billion in a
company identified as PT SIP and the provision of a Rp 49.2
billion loan to a company identified as PT V, which was deemed a
blunder.

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.

The team also found that collateral gained by Jamsostek to
provide loans to several companies were fictitious.

Both Alamsyah and Djunaidi will be charged under
Anticorruption Law No. 31/1999, which carries a maximum penalty
of life if proven guilty.

Director of the fraud squad at the National Police
Headquarters Brig. Gen. Indarto said Djunaidi had notified him of
his unavailability for questioning as he was processing a permit
at the immigration office to perform a minor pilgrimage in Mecca.

"We have notified the immigration office to reject his request
since he has already been declared a suspect and therefore is
subject to a travel ban," Indarto said.

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.