Police seize assets of Bank Arta suspect

Police seize assets of Bank Arta suspect

JAKARTA (JP): Police have seized assets of Kim Johanes Mulia,
a suspect in Bank Arta Prima's Rp 1.2 trillion promissory notes
scandal.

The chief of the city police detectives, Col. Gories Mere,
said Friday police had seized Kim's assets which were worth about
Rp 172.5 billion.

"As much as Rp 170 billion was in the form of commercial
papers, while the remaining Rp 2.5 billion was in two local
banks," Gories said.

Police have blocked the two accounts. Gories refused to say
which banks the accounts were from.

Kim and five other businessmen were arrested for their alleged
involvement in the Rp 1.2 trillion scam, comprising Rp 324
billion in commercial papers underwritten by Bank Arta Prima and
Rp 700 billion in bad loans.

Kim was the owner of PT Jagata Primabumi, the company which
took over Bank Arta Prima from PT Gunung Agung and Group in July
1995.

A lawyer for Gunung Agung, Denny Kailimang, said his client
would sue Jagata because it acquired Arta Prima without meeting
agreed obligations on taking over Gunung Agung's debts.

Jagata Primabumi is said to have converted commercial papers
worth Rp 107 billion into Bank Arta Prima capital to artificially
increase its value from Rp 100 billion to Rp 207 billion.

Jagata Primabumi then sold Bank Arta Prima to Bank Artha
Graha, which reported the scam to police.

Gunung Agung's former main shareholder and current advisor,
Made Oka Masagung, was arrested.

The other four suspects are the bank's former president
Chaidil Aini, former director Husni Ali Thaqil, and former
commissioners Hari Suhalim and Marul Maulana.

Made and Kim have been prohibited from leaving the country
since May 7.

Gories said investigations were continuing into other assets
belonging to Kim here and overseas.

He said police had not yet seized Made's assets.

So far 17 witnesses have been questioned.

"None of the witnesses were from Bank Indonesia (the central
bank)," he said. (cst)