[Kabar-indonesia] Council to probe 'hidden' funds in E. Nusa Tenggara

[Joyo at aol.com]

also: Defrauder gets seven years in prison

The Jakarta Post
Wednesday, November 1, 2006

Council to probe 'hidden' funds in E. Nusa Tenggara

Yemris Fointuna , The Jakarta Post, Kupang

The East Nusa Tenggara Legislative Council is planning to
set up a special committee to investigate Rp 294 billion
(US$32.2 million) of leftover budget money allegedly
"hidden" by the local provincial administration.

Council speaker Melkianus Adoe said he had introduced a
local regional regulation requiring the administration,
headed by Governor Piet A. Tallo, to explain the use of the
leftover money from the 2003 budget.

The existence of the funds meant there was no reason for the
administration to frequently claim it was in financial
difficulties, Melkianus said.

"The leftover money should be used for the construction of
infrastructure for agriculture, health and education," he
said.

Yan Sehandi, a councillor, said Tuesday an investigation
into the funds was vital because the administration had
never accounted for the money, which was believed to have
been deposited in several bank accounts.

The administration had been asked about the missing money in
most budget meetings but had never explained its
whereabouts, Sehandi said.

"If the money is being saved in bank accounts for interest,
what it will be used for?"

Another councillor, Viktor Mado Tupen, questioned why the
funds had never been audited by the local finance
comptroller.

"The (provincial) government has to be transparent because
if the funds are left at the banks for a long time, they
risk being misused," he said.

A source as the administration told The Jakarta Post the
funds saved at the banks had earned around Rp 18 billion in
interest during the past four years.

Meanwhile, provincial finance bureau chief Ovi Wila Huki
claimed the leftover funds reached only Rp 284 billion and
not Rp 294 billion. He did not explain the reason for the
discrepancy.

Wila Huki said the administration had already given
councillors an explanation about the money but would not
reveal what this was.

"There is no regulation (in existence) that forces the
administration to explain the whereabouts of the funds to
the council, although the two are partners," he said.
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The Jakarta Post
Wednesday, November 1, 2006

Defrauder gets seven years in prison

The Jakarta Post , Jakarta

The South Jakarta District Court sentenced businessman
Jeffrey Baso to seven years' jail Tuesday and fined him Rp
200 million (about US$22,000) for his part in defrauding
state Bank BNI of Rp 1.7 trillion.

The court also ordered confiscation of property belonging to
Jeffrey, the president director of PT Triranu Caraka
Pasifik, including 5,000 hectares of land in Bali and two
mansions in Raffles Hill, Cibubur, East Jakarta. An extra
six month's jail will be added to his sentence if he does
not pay the fine.

Jeffrey is the last of several businessman and police
officers who have been tried and convicted in connection
with the fraud at the bank. One key suspect, Adrian
Waworuntu, has been jailed for life in the case but his
accomplice, Maria Pauline Lumowa, is a fugitive from justice
and is believed to be living overseas.

PT Triranu Caraka Pasifik is a subsidiary of PT Gramarindo
controlled by Adrian.

Former National Police chief of detectives Comr. Gen.
Suyitno Landung and policeman Sr. Comr. Irman Santosa, were
earlier jailed after being found guilty of receiving bribes
from defendants.

Business consultant Ishak, who the court found assisted
Adrian in bribing Suyitno, was also sentenced to four years'
jail. The middleman was found guilty of securing Rp 5
billion from Adrian to pay Suyitno.

During Jeffrey's trial, prosecutors said he used eight
fraudulent letters of credit to steal Rp 1.7 trillion from
BNI's Kebayoran Baru branch in 2003 for Triranu Caraka
Pasifik, money that was later disbursed to Gramarindo
companies.

The court ruled Jeffrey's company obtained the letters on
the pretext of exporting goods to China. However, in
collusion with Adrian and Maria, he later converted the
funds into foreign exchange and deposited it in accounts of
companies affiliated with Gramarindo, it found.

Presiding judge Sutjahjo Padmo gave Jeffrey a week to decide
if he would appeal the verdict.

Speaking after the trial, Jeffrey's lawyer indicated her
client was likely to contest the ruling.

"Jeffrey has other businesses too and he bought those
properties in Bali and Cibubur with money from sources other
than the bank credit," Farida Sulistyani said.

"Two out of the eight letters of credit in question did not
have Jeffrey's signatures. The (others) have been forged but
the court has not proved that," Farida said.
Prosecutors said six letters were used to obtain US$12.9
million and two letters for another 8.3 million euro
(US$10.5 million).

Only $3.1 million and 1.5 million euro of the money was
repaid.

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Joyo Indonesia News Service
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