Police grill regency officials over scam

Oyos Saroso H.N.
Bandarlampung

Lampung Police are questioning regency officials for their involvement in depositing funds from the administrations' budget with Bank Tripanca, which recently collapsed, Police Chief Brig. Gen. Ferial Manaf said on Thursday.

Ferial stated that East Lampung regency financial division head Sugiarto, treasury sub-division head M. Erwin and revenue division head Nursyamsu were questioned over the regency's deposits in the bank.

He said police will also examine officials of the Central Lampung and Tulangbawang regency administrations as to their involvement in their administrations decision to bank with Tripanca.

He said Lampung Police have named Sugiharto Wiharjo, alias Alay, president commissioner of the liquidated Bank Tripanca, as well as head of its credit division, Yanto, as suspects in the banking scam.

"Based on initial audits, Yanto issued allegedly fraudulent credit loans worth Rp 378 billion (US$34 million) and took the collateral," Ferial said.

Police believe Bank Tripanca has committed banking fraud by issuing fictitious loans, worth billions of rupiah.

The East Lampung, Central Lampung and Tulangbawang regency administrations reportedly deposited Rp 107 billion, Rp 25 billion and Rp 80 billion of their respective budget funds with the bank.

A number of other regency administrations in Lampung have also deposited between Rp 5 billion and Rp 10 billion of their budgets with the bank.

Ferial said police were currently examining two officials of the Central Bank's (BI) Lampung branch as well as Hengki Widodo, a member of Bank Tripanca's board of commissioners and Alay's younger sibling.

Bank Tripanca collapsed as a result of impacts stemming from the global financial crisis along with the mismanagement of its agricultural produce business.

Yanto is charged with committing banking crimes and is being detained at the Lampung Police headquarters. Alay is still at large, but, despite his fugitive status and the considerable losses he is responsible for, neither police nor bank customers have filed a request for his arrest.

In August this year, Lampung BI announced that Bank Tripanca was in a sound state, but a few months later revealed that its balance amounted to only tens of millions of rupiah.

Based on BI inspections, the bank's management board (commissioners, managers and employees) face charges of breaching Law No. 10/1998 on banking and could face up to 10 years in prison and fines of a maximum Rp 200 billion.

Lampung Police have requested help from the National Police Headquarters and Interpol to locate and arrest Alay. Alay also has outstanding debts with coffee suppliers and five other creditor banks.

Lampung Police spokesperson Adj. Sr. Comr. Fatmawati said investigators were tracing Alay's bank accounts and cash flows at several banks in Lampung.

The Jakarta Post, Friday, Dec 19 2008

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