Govt drops fraud charges against Kim

Govt drops fraud charges against Kim

JAKARTA (JP): Attorney General Singgih announced that the
government has dropped the criminal charges against textile
businessman Kim Johannes for lack of evidence to support the
allegation that he defrauded the monetary authorities.

Singgih disclosed the decision during a hearing with
Commission III of the House of Representatives on Tuesday night.

He told the commission members however that Kim, the owner of
PT Deta Marina, would be asked to pay an administrative penalty
to the government for declaring fictitious exports.

He said there were other considerations behind the decision to
drop the case including socio-economic factors. He did not
elaborate.

The elaboration came from Commission III Chairman Suhardi in
his response welcoming the decision to stop the investigation.

"We have to handle this case with caution because it affects
employment, state foreign exchange receipts and international
trust in Indonesia," Suhardi said.

Kim has been under investigation after Bapeksta, an agency at
the Ministry of Finance which facilitates export services, said
that he had obtained import duty rebates on some Rp 15 billion
($6.8 million) worth of fictitious exports from Bapindo, the
state bank that handles the rebates.

Singgih said his office had been pursuing Kim's case based on
the 1971 corruption law.

"Based on our investigation and statements from officials of
the monetary authorities, Bank Indonesia (central bank) could not
ascertain the amount of losses inflicted by Kim's action."

Instead, Kim has been asked to pay 10 percent of the declared
exports as an administrative penalty, Singgih said. (29/imn)