Police close down savings chain scheme

Police close down savings chain scheme

JAKARTA (JP): The city police have closed down the operation of the controversial Danasonic arisan savings chain scheme run by Jakarta-based PT Saptamitra Ekakarya in response to growing concern from the public.

City Police Chief Maj. Gen. Dibyo Widodo told reporters on Thursday that the company's president, Mrs. A.K. and its commissioner, S.H., were arrested early this week on suspicion of fraud and forgery.

Dibyo said that within two weeks at the maximum, the dossiers on the two suspects will be handed over to the prosecutors' office for trial.

"We just arrested the two suspects early this week because we had to thoroughly study the operation of the savings chain scheme and the losses it caused," he said.

Dibyo said that the police had previously warned the public to be careful about the activities of the savings group.

He declined to comment any further on the case. "Let's wait for the trial before going into any details on the violations committed by the suspects," he said.

Arisan is a periodic gathering to draw lots for an aggregate sum of money contributed by the members.

Unlike the traditional arisan system, the Danasonic scheme required a new member to pay Rp 11,000 (US$5) to the organizer and another Rp 10,000 each to two other participants listed on a coupon.

In return, the new member was promised that he or she could receive up to Rp 10 million if they actively sold coupons to other people, who were in turn expected to become actively involved in the savings plan.

Executives of the firm, whose headquarters was located on Jl. Raya Pasar Minggu in South Jakarta, claimed that about 500,000 people were members of the arisan savings scheme nationwide. (hhr)