Govt makes progress in fake export probe

Govt makes progress in fake export probe

JAKARTA (JP): An interdepartmental government team has
resolved to initiate court proceedings against a number of
entrepreneurs for forging export documents. It reached its
decision after establishing that the businessmen's actions had
caused financial losses to the government.

The team had previously been locked in a debate about whether
there were grounds for prosecution. Reports of fictitious exports
were first made by the directorate general of customs and excise.

"We already have enough evidence to bring the suspects
involved in the export documents scheme to trial," Attorney
General Singgih said, after presiding over meeting of the team at
his office yesterday. "However, we cannot determine the extent of
the state losses at this stage as we are waiting for the monetary
authorities to complete their own investigations."

Singgih declined to mention the names of the suspects, saying
that the investigation had only just begun.

According to a preliminary investigation, the forged documents
were used by the entrepreneurs to obtain subsidized credits from
state banks.

The issue first arose in the middle of last year with the
allegation that Kim Johannes Mulia, the owner of a huge textile
company, had been making fictitious exports to Singapore to
obtain credits from Bapindo, a state-owned bank.

The allegation was made after Johannes came into public view
while attempting to bail out a large textile firm that was on the
verge of bankruptcy. The takeover bid failed eventually amidst an
uproar over the alleged fraud.

Johannes has since been barred from traveling overseas pending
the completion of the investigation. Two other businessmen, Abauw
alias Ganda and Jenner Yusman, have also been barred from leaving
the country, reportedly over similar fraud allegations.

Singgih yesterday gave an exposition of the preliminary
findings. The meeting was attended by the Director General of
Tax, Fuad Bawazier; the Director General of Custom and Excise,
Soehardjo; and Director General of Foreign Trade, Djoko Moeljono.
Also in attendance was a director of Bank Indonesia, Hendro
Budianto, along with other officials.

Chairul Imam, acting spokesman for the Attorney General's
Office, said the suspects had all operated in the same way. They
had forged documents certifying shipments of garments which had
never, in fact, been made. The forged documents were used to
support applications to banks for export credits.(imn)