Indonesian Political, Business & Finance News

Official reported to police over debt

| Source: JP

Official reported to police over debt

Evi Mariani, The Jakarta Post, Jakarta

The Jakarta Sanitation Agency head Selamat Limbong and wife
Herlintje Sagala have been reported to the city police over their
unsettled debt amounting to Rp 1 billion (US$119,048) to a city
councillor Posman Siahaan.

"When Selamat was trying to secure the position of agency head
in April 2002, my client Posman lent him Rp 1 billion," Posman's
lawyer Petrus Bala Pattyona said on Tuesday at the city police
headquarters. "As collateral, Selamat gave Posman the building
certificates for two houses in Jakarta."

Petrus said that Selamat took the documents back in October
2002, saying that he needed them as mortgages to seek funds from
other sources to pay his debt to Posman.

However, since then Selamat has ignored Posman's calls and has
not made an effort to repay the loan, the lawyer added.

On Feb. 10 this year, Petrus, on behalf of his client, sent a
letter to Selamat, asking the agency head to come to the lawyer's
office on Feb. 13 to discuss the problem.

In the letter, Petrus also told Selamat that if he did not
reply to the invitation, both they would report him to the city
police and reveal the case to the press.

When Selamat did not show up, Petrus filed the complaint to
the police on Feb. 16.

Posman accused Selamat of violating Articles 372 and 378 of
the Criminal Code on fraud and embezzlement. Both articles carry
a maximum penalty of four years imprisonment.

Neither Posman or Selamat could be reached by The Jakarta Post
for comment.

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