Money printing firm's directors named suspect

Money printing firm's directors named suspect

Abdul Khalik, The Jakarta Post, Jakarta

Jakarta Police are moving ahead with the investigation into the
alleged embezzlement of Rp 2.3 billion (US$242 million) at state
banknote printing company Peruri after declaring its president
director and two subordinates suspects on Friday.

Police spokesman Sr. Comr. Tjiptono said on Sunday that the
police summoned president director M. Koesman Martono, logistics
director Marlan Arif and marketing director Suparman for
questioning on Monday.

"We expect them to heed the summonses as suspects for
allegedly embezzling the company's money," Tjiptono told The
Jakarta Post.

Tjiptono revealed that the alleged embezzled money was part of
the company's Rp 5.9 billion profit for the 1999-2000 period.

Marlan Arif allegedly withdrew Rp 4.175 billion in July 2000
to be distributed to employees while the remaining Rp 1.7
billion, upon the order of then managing director Suparman, was
subsequently allocated as operational funds for directors.

The Rp 1.7 billion was deposited in a bank, and for three
years it grew to Rp 2.3 billion due to interest paid on the
principal.

Koesnan instructed in 2004 that the money be channeled to the
company's "extended family" as social and education funds.

"Part of the money was said to be used to build a mosque and a
school, but during our investigation we found no buildings were
constructed," Tjiptono said.

He explained that the police would charge the suspects under
Law No. 28/1999 on corruption, which carries a maximum punishment
of 12 years in prison, as well as articles 372 and 374 of the
Criminal Code on embezzlement, which stipulates a maximum
sentence of five years in prison.

Tjiptono said that if the three suspects did not appear for
questioning on Monday, the police would immediately issue another
summons for each suspect.

According to the law, a suspect has three opportunities to
comply with a police summons before being forced to appear at a
police station for questioning.

Tjiptono said it was possible that the three suspects would be
detained after questioning.

"If we suspect they may run away or destroy evidence then we
will detain them as soon as possible. By law we have the right to
detain a suspect if the suspect is charged for a violation that
carries a punishment of five years' imprisonment," he said.

Three criminal cases at Peruri have been reported this year
alone.

A Peruri employee identified as Mulyono, who worked for the
company for 20 years, was arrested by the police in February for
allegedly stealing thousands of banknotes worth billions of
rupiah over several years. Police are still gathering evidence to
complete the case file.

Earlier this year, several Peruri employees were named
suspects for cooperating with outsiders to produce and circulate
counterfeit banknotes.