Probe into gold bullion company widened after arrest
Probe into gold bullion company widened after arrest
JAKARTA (JP): Police will widen their probe into PT Pan
Bullion Prima, a private gold bullion trading company, after the
executive director was named a suspect.
National Police spokesman Brig. Gen. Da'i Bachtiar said
yesterday that investigators would start questioning other
executives and staff members as potential witnesses to alleged
breaches of the firm's business permit.
"There is always a possibility that other employees might have
been involved in the crime," he added.
Da'i said the company's executive director, identified only as
JS, was officially named a suspect last week.
"JS is accused of abusing the business permit in his capacity
as the person responsible for the company. The company has
operated more like a bank than a regular trading company."
He said the action had violated Article 46 of the 1992 Banking
Law No. 7 which stipulates a maximum of 15 years in jail and Rp
10 billion (US$833,333) in fines.
The company's headquarters at Plaza Bapindo on Jl. Jend.
Sudirman in South Jakarta has been temporarily closed since Jan.
20, the spokesman said.
And JS was arrested a couple of days prior to the closure.
Da'i said the company received deposits from its customers in
the form of gold bullion or money and promised to pay the
customers interest.
"That's against its business permit. The company should have
had a license from the Ministry of Finance if it wanted to
operate such bank-like activities."
He said it had functioned like a bank since 1991.
JS was arrested after some customers reported to police the
company's failure to pay interest on their gold bullion deposits.
"His company has failed to pay the interest or return about
400 kilograms of gold bullion, valued at about Rp 11 billion, to
some 430 customers."
The company's failure to meet its obligations to customers was
apparently linked to the monetary crisis which has effected the
price of gold, Da'i said.
JS could be punished for the company's breaches, he said.
"JS could be accused of cheating and defrauding the customers
by failing to fulfill his responsibilities."
He said police were preparing to charge JS under articles 372
and 378 of the Criminal Code on deception and fraud.
If found guilty, he could face a maximum of four years in jail
or a fine of Rp 60.
He said the court would decide what to do with the company's
assets and how to pay out the customers. (cst)