Sat, 18 Jun 2005

New suspect named in Jamsostek case

Eva C. Komandjaja, The Jakarta Post/Jakarta

Former director of state-owned insurance firm PT Jamsostek was named as a suspect on Friday following an investigation into alleged graft inflicting more than Rp 250 billion (US$26.3 million) in financial losses on the state.

Head of the interdepartmental anticorruption team Hendarman Supandji identified the suspect by the initials AA, but a source from National Police Headquarters, where the case is being handled, said the suspect was named Andi Alamsyah, a former investment director at the company.

Hendarman explained that the investigators found evidence that the suspect had committed graft during his term and would be questioned as a suspect on Monday.

Andi was declared a suspect as he was responsible for a series of investment blunders made by Jamsostek, which manages social security programs for workers in Indonesia, that led to the infliction of losses on the state

Among the blunders were a Rp 100 billion (US$10.5 million) investment in bonds issued by the now defunct Bank Global; a Rp 49.2 billion loan given to a company identified as PT V, and a Rp 105.5 billion investment in a company identified as PT SIP.

Hendarman said that the investment in the Bank Global bonds had not been made in accordance with prudential principles.

"The insurance firm should have conducted a thorough study before making the investment decision," Hendarman said.

Hendarman added that the investigators would decide whether to detain the suspect after questioning him on Monday.

He also hinted that there could be more suspects named in the Jamsostek case in the future, adding that so far the investigators had questioned more than 10 witnesses.

The alleged corruption at Jamsostek is one of five graft cases at government institutions that are currently being investigated by the team amid the ongoing campaign against corruption in the country.

The team is also investigating a corruption case at the Ministry of Religious Affairs. It has so far named two suspects, including former minister Said Agil Hussein Al-Munawar.

Hendarman added that his team had also found indications of possible corruption at state-controlled telecommunications firm PT Telkom.

"We will raise the status of the investigation at PT Telkom to a full-scale one starting next week," Hendarman said.

However, Hendarman refused to give details of the case, saying that he would explain the case, including the violations that had been uncovered, after his investigators had collected sufficient evidence.