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)