McDonald's boss name suspect in graft case
Rendi A. Witular, The Jakarta Post, Jakarta
President director of PT McDonald's Indonesia Bambang N. Rachmadi was named a suspect by Jakarta City Police in the Rp 40 billion (US$400,000) graft case involving state-owned social security company PT Jamsostek on Monday.
Bambang, the son-in-law of former vice president Sudharmono, who held office from 1988 to 1993, however, remains a free man. He has been on a business trip to Australia for the past two weeks, but is expected to return sometime next week.
In addition to Bambang, police also named former president director of PT Jamsostek, Akmal Muchsin, and former treasury director Horas Simatupang, as suspects.
Police detained both Akmal and Horas after questioning them for eight hours, as there was adequate evidence to detain them.
Bambang, Akmal and Horas were charged for their alleged role in the Rp 40 billion graft of PT Jamsostek's fund in March 1999.
Bambang, through his company PT Ramako Gerbangmas, issued a promissory note worth Rp 40 billion for a one-year period to PT Jamsostek.
But after the note's due date on Aug. 12, 2000 -- when the amount had increased to Rp 54.5 billion -- Bambang failed to fulfill his obligation, saying that his company still needed the funds for renovation, and increasing the number of his McDonald's outlets throughout the country.
Until the deadline, Bambang only managed to pay Rp 1.5 billion of his note.
Bambang then guaranteed his obligation payment with a 5,000- square-meter tract of land on Jl. Rasuna Said, South Jakarta.
But the land value was not suitable for his obligation.
President director of PT Jamsostek at the time, Ahmad Djunaidi, reported the case to City Police.
Police suspected graft was involved, and began to develop a case against the men for the misuse of state money.
City Police Corruption Division Chief Adj. Sr. Comr. Anton Wahono rejected speculation that Bambang knew the police's plans to arrest him, and fled overseas to avoid authorities.
"There is a possibility that Bambang will also follow the other two suspects to detention -- it depends on the questioning," he said.
Anton said that the suspects would be charged with Anticorruption Law No. 31/1999, which carries a maximum penalty of 20 years in prison.
PT Jamsostek has long been known as the government's moneymaker, particularly during former president Soeharto's regime.
The company was in the spotlight when former Minister of Manpower Abdul Latief allegedly gave money to the House of Representative members, using the PT Jamsostek fund to help pass the controversial Jamsostek bill during his tenure, which lasted from 1993 to 1997.
However the accusation could not be proven by the Attorney General's Office and Latief, owner of Pasaraya Grande, was never charged.