Three detained in pawn scam

JAKARTA: The police have detained two directors and a manager of state pawnshop PT Pegadaian in Kebayoran Baru, South Jakarta, over alleged fraud which has caused Rp 5.5 billion (US$655,000) in state losses.

National Police spokesman Insp. Gen. Basyir Barmawi told a media conference on Friday that the arrest of director DK, executive director KS and credit risk manager N, was based on an audit submitted by the Development Finance Comptroller (BPK) on Nov. 13, 2003.

Basyir did not explain when the crime took place nor the number or type of the pawned goods.

An investigation revealed the three had allegedly conspired with several customers to reclaim lost goods and to claim compensation, in this case, of up to 300 percent of the value of the lost goods.

The pawnshop regulation states that if goods in a pawnshop are lost, the owners have the right to ask for compensation of up to 125 percent of the value of the lost goods.

Basyir added that the National Police were still searching for two other accomplishes, SW and LN, who posed as customers. --JP