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.