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Two arrested for $59 million scam in Indonesia


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Two arrested for $59 million scam in Indonesia

2011-08-21 11:15:18 GMT+7 (ICT)

JAKARTA (BNO NEWS) -- Police in the Indonesian capital of Jakarta detained two people on Friday for an alleged money-laundering scheme involving state-owned insurer Asuransi Kredit Indonesia (Askrindo) which may have cost the state up to Rp 500 billion ($59 million), local media reported on Sunday.

The suspects, who have been identified as former directors at Askrindo, are accused of putting the insurer's funds in six investment companies between 2004 and 2009 under the pretext of diversifying Askrindo's portfolio by investing in corporate and state bonds.

However, there was no return for the state from the investment and investigators found only Rp 5 billion ($585,000) was left in the companies, the Jakarta Globe reported.

Chief Commander Baharudin Djafar told the newspaper that the remaining Rp 5 billion ($585,000) would be used as evidence and that police are investigating the whereabouts of the rest of the money.

The Askrindo executives have also been charged under the Anti-Corruption law in connection with the fraud which could total between Rp 400 billion ($46.8 million) and Rp 500 billion ($58.5 million), according to investigators.

The investigation started two months ago in June based on the information reported by the Capital Market and Financial Institution Supervisory Agency (Bapepam) and the Financial Transaction Reports and Analysis Center (PPATK), an anti-money laundering agency.

Police plan to question a number of witnesses, state auditors, and experts in investment, money laundering and criminal law to help with the investigation, Baharudin told the newspaper.

Ajie Indra, head of the corruption investigation unit at Jakarta police, said the number of suspects could increase but so far, no one from the six investment companies has been arrested or charged. However, some 24 bank accounts of suspects and other people who could also be implicated have been frozen while the investigation continues.


-- © BNO News All rights reserved 2011-08-21

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