Police make progress in bank scam investigation
Police make progress in bank scam investigation
JAKARTA (JP): Police claimed yesterday they were making good
progress in an investigation of a huge corruption scandal at PT
Gunung Agung's subsidiary Bank Arta Prima.
City Police Detective Chief Col. Gories Mere said the police
had accomplished at least 40 percent of the investigation.
"Police found six commercial papers in addition to the first
five papers confiscated as evidence.
"They are valued at hundreds of billions of rupiah. I don't
remember the exact value. But one of the papers is worth around
Rp 30 billion (US$12.2 million)," Gories said.
Gories emphasized earlier that police would not put the six
detained businessmen, especially those who are believed to have
played a major role in the scam, under house arrest.
"Police have enough evidence to keep them in detention for
further investigation," Gories said.
Police had arrested six businessmen for alleged involvement in
a scam worth Rp 1.2 trillion, comprising of Rp 324 billion in
commercial papers underwritten by Bank Arta Prima and Rp 700
billion in bad loans.
The six detained businessmen include Made Oka Masagung, the
former main shareholder and now advisor to PT Gunung Agung, a
widely diversified publisher of books, a bookstore chain and
other businesses.
Another detainee is businessman Kim Johanes Mulia of PT Jagata
Primabumi, which took over Bank Arta Prima from Gunung Agung in
July 1995.
Police believe Kim was the mastermind behind the scam.
In the scam, Jagata Primabumi converted commercial papers
worth Rp 107 billion into Bank Arta Prima's capital to
artificially increase it to Rp 207 billion from Rp 100 billion.
Jagata Primabumi then sold Bank Arta Prima to Bank Artha
Graha, which reported the scam to police.
Both Made Oka Masagung and Kim Johanes Mulia have been
prohibited from leaving the country since May 7.
The other four who are being detained are Chaidil Aini and
Husni Ali Thaqil, respectively former president and director of
Bank Arta Prima, and Hari Suhalim and Marul Maulana, the bank's
former commissioners.
Made's lawyer, Denny Kailimang from Rudhy A. Lontoh, Denny
Kailimang and Associates law firm, earlier questioned why the
articles under which his client had been charged had been
changed.
"The articles which were first used to nail my client were
different from the ones used to extend his detention term," Denny
said.
Made was previously charged under Article 263 of 1971 Law No.
3 on corruption, Denny said.
However, it was replaced with Article 49 (1) of the 1992
Banking Law as stated in a letter from the police and the
Attorney General Office's to extend Made's detention, Denny said.
In line with the changes in articles, the office extended
Made's detention at City Police Headquarters until July 4.
Denny said that police might have acted hastily in arresting
Made and the other five former bank executives on corruption
charges.
Police have questioned at least 10 witnesses, including former
executives of the bank, employees and banking experts.
Gories said that developments after further investigation
might involve other executives of the bank as well.
"If other former executives are found to be involved in the
scam, they will also be arrested," Gories said. (cst)