House members check Bank Arta Prima scam

JAKARTA (JP): House members said yesterday that Made Oka Masagung, who has been in police custody since May 6 in connection with an alleged Bank Arta Prima promissory notes scam, could ask for a pre-trial judgment.

"I think Masagung could even be released immediately if his case is not a criminal but a civil one," said Oka Mahendra, a member of the Golkar faction at the House of Representatives.

Mahendra and Budi Hardjono, a House member of the Indonesian Democratic Party faction, were commenting on how the police have handled the scam related to the issuance of promissory notes worth Rp 324 billion (US$132 million).

Masagung and five other businessmen were arrested in early May when Gunung Agung failed to settle Rp 324 billion in promissory notes it had allegedly issued at the request of PT Jagata Primabudi which had bought Bank Arta Prima from Gunung Agung.

"The police should not act too hastily in handling this case," Budi was quoted by Antara as saying about the arrest of six businessmen suspected of being involved.

Budi urged police to handle the case in line with existing laws, "taking to court those suspected of being responsible for the scam and freeing the ones who turn out to be clean."

The scandal came to light in the middle of last month when the Artha Graha group bought Bank Arta Prima from PT Jagata with Bank Indonesia's consent.

The Artha Graha group discovered that the promissory notes had been underwritten by the Gunung Agung group.

The House members said Masagung and the other men currently in police detention could sue the police at the State Administrative Court if they could prove they were not involved in the scandal. (vin)