Insurance scam suspect has one week to return cash

Insurance scam suspect has one week to return cash

JAKARTA (JP): Police gave a primary suspect in the alleged Rp
410 billion (US$55.4 million) insurance fraud at the military and
police insurer (Asabri) a deadline of until the end of this month
to return the money, an officer said on Monday.

A National Police source said the suspect, identified as Henri
Leo, a wealthy businessman here, would be charged if he failed to
meet the deadline.

"Strict measures will be taken in this case. I will not
elaborate what kind of measures. But, it's about Rp 410 billion,"
said the officer who spoke on condition of anonymity.

"Henri said he only had assets worth Rp 29 billion. But, what
good is that? We're talking about Rp 410 billion which is gone...
absolutely missing," the officer said.

As reported earlier, National Police detectives are
investigating the fraud, which reportedly involved three retired
generals and a businessman.

National Police spokesman Brig. Gen. Togar M. Sianipar said
the investigation was focused on the suspected role of a two star
general and businessman.

A source later said that Henri Leo was the businessman, while
the two-star general was retired Maj. Gen. Subardja, who formerly
served as expert staff of former minister of defense and security
Gen. Feisal Tanjung.

The source added that the two other figures under
investigation were four-star military generals who retired
recently but continue to hold political influence.

Henri, who works at the Mashill building, was quoted earlier
by National Police detectives, as saying that he could not return
the money, saying that he had had some "bad business".

Meanwhile, the source mentioned that Subardja had already been
queried by National Police detectives. Subardja had also been
questioned by the inspector general of the Ministry of Defense
and Security.

"There have been no grounds to detain Subardja, so far.
Meanwhile, Henri has been detained and a travel ban has been
issued against him," the source said.

The Asabri insurance scheme is headed by a board of the
Indonesian Military and police officers, including Maj. Gen.
Subardja. The scheme is based on deductions from the monthly
wages of at least 600,000 Military and police personnel
nationwide.

"If Subardja is proven guilty, his case will then be
transferred to the Military Police. The crime occurred when he
was still an active Military man," the police source said.

As reported earlier, the embezzled funds were deposited in
several time deposit accounts at state BNI bank, in 1994.

The time deposit accounts were opened for varying periods,
such as three months, six months and one year, at different
branches of BNI.

They were later converted into promissory notes in Henri's
name from 1995 until the embezzlement was discovered recently. It
remains unclear how the fraud was uncovered and who reported it
to the authorities. The sources speculated that executives from
BNI were probably involved in the scam. (ylt)