Century Bank Scandal

Even though it is the products of PT Antaboga Deltasekuritas Indonesia that are being questioned, the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) and customers who invested in the products claim that the actual fraud occurred at Bank Century. All transactions of PT Antaboga Deltasekuritas Indonesia investment products were done at Bank Century. None of the customers actually went to Antaboga.

As it turns out, Antaboga has permit as investment manager but that permit was never activated. Neither did it ever issue mutual funds products. “Antaboga does not have mutual fund products. Its investment manager permit was never activated. Neither was its permit as a broker,” said Fuad Rahmany, head of the Bapepam-LK, Jakarta, Dec. 10.

Furthermore, Robert Tantular, who has been arrested for different charges and is currently detained, has been named by Bapepam-LK as the brains behind the scam. “The customers’ money was used by Robert Tantular. He is the brains behind it all,” said Fuad.

In fact, all of the money that Bank Century customers invested went directly into his pocket, merely passing through Antaboga. “The money went to Century owners,” Fuad said. It’s a good thing, Fuad went on to say, that Robert was already caught and behind bars. Robert was arrested in relation to the Bank Century scandal that led to its takeover by the government.

The technique that Robert used has been described as ‘advanced’. Fuad described it as such, saying that the modus have been discovered after an investigation by the Bapepam-LK’s investigation team. “He took the customers’ money using advanced techniques,” Fuad said.

Bapepam-LK will continue to look into who was actually responsible for the fraud. “If indeed a group in the company is guilty, it can be shut down. But if only certain parties are responsible, then it’s those parties that would be prosecuted,” said Fuad.

Bapepam-LK itself was unaware of the product being sold. It was not registered and there were in fact no mutual funds. “The mutual funds did not exist. It was fictive,” said Fuad.

Despite the fact that the ‘fictive’ products were issued by Antaboga and that Robert Tantular has already been arrested, Bank Century is taking the heat.

“The problem is, it was Century’s marketing who offered the product to Century customers and the transactions occurred there,” said Bapepam-LK’s Director of Verification and Investigation Bureau, Sarjito, Dec. 9.

Fuad Rahmany related similar sentiments about Century. According to Fuad the actual fraud occurred at Bank Century because it was there that the transactions were done. “There is something not right with what Bank Century was doing,” Fuad said, Dec. 10.

The customers were offered the products there, even though the products being sold were Antaboga’s products. “They said it’s Antaboga products but they were sold at Century,” said Fuad.

This is why, Fuad said, most of the victims are Bank Century’s customers. “Customers bought and put their money there (at Bank Century),” he said. The customers never even went to Antaboga’s office. At least not until they realized there was something wrong with their investment.

Antaboga’s customers did in fact disclose that they bought the products from Bank Century branches. As such, they are asking Bank Century to take responsibility. “We don’t care. Bank Century has to take responsibility,” said Gunawan, a representative of the customers who fell victim, to VIVAnews, Jakarta, Wednesday, Dec. 10.

The victims said that they have always been dealing with Bank Century customer service with regard to their investment. Bank Century employees have convinced them that the discretionary fund investment products they offered were safe. “All we know is that the product was sold by Century, not Antaboga. That’s why we were convinced,” said Gunawan, Dec. 10

Meanwhile, a team has been formed by Bank Century to deal with customers who had bought Antaboga products through Century. The customers themselves have decided to form a team. About 50 of them had gone to Century’s central office yesterday, Dec. 10, to meet with Century’s representatives. During the meeting they agreed to form a working group.

According to Deddy Traina, Bank Century’s Corporate Secretary, the meeting includes five representatives from the customers’ side, from different regions. “Later, Antaboga investors will be able to relate their problem through the working team,” said Deddy.

The number of customers who have filed a complaint to Bank Century is about 150 people as of Wednesday, Dec. 10. These customers became agitated after finding out that they could not cash their funds even after they were due last month. They were interested in investing their money in the first place because they were offered a high interest rate of 11.5 to 13 percent.

The total amount of customers’ money at issue amounts to Rp 1.5 trillion (approx. US$137.37 million).

But there is a possibility that this figure would increase. "That's the outstanding amount that are due. We'll see. There's apossibility the amount would increase," he said Sarjito, Dec. 9.

Meanwhile, Bapepam-LK had also said that it will continue its investigation on all parties that could possibly have been involved, including Century’s marketing department. “The investigation schedule is already done. All who was involved would be investigated, until this matter is cleared,” said Sarjito.

However, this does not mean that Antaboga’s management is not involved. “I can’t say that. In principle, if they knew but they let it happen, they will still get it,” said Sarjito

Police in hot water after criminalizing KPK officials

Six national commissions criticized the police on Tuesday for criminalizing two deputy chairmen from the Corruption Eradication Commission (KPK).

"We regret and are concerned with the criminalization of KPK deputies carrying out the commission's function, duty and authority to eradicate corruption in Indonesia," National Commission on Human Rights (Komnas-HAM) chairman Ifdhal Kasim said in a joint statement prepared by the six commissions.

The statement was signed by representatives of the Indonesian Broadcasting Commission (KPI), the KPK, the Financial Transaction Report and Analysis Center (PPATK), the National Police Commission (Kompolnas) and National Commission on Vio-lence against Women (Komnas Perempuan).

The commissions said the action had indications of legal uncertainty and a was a violation of human rights.

The two KPK deputy chairmen - Chandra M Hamzah and Bibit Samad Rianto - were named suspects two weeks ago for an alleged abuse of power in issuing travel bans on corruption suspects Anggoro Widjojo and Djoko S. Tjandra (who are now at large) and for lifting a travel ban on Djoko.

The police subsequently accused them of having received bribes from Anggoro to halt investigations into corruption cases implicating Anggoro's company, PT Masaro Radiokom.

However, the police have failed to convince the public over the accusations, as to date they have failed to produce any evidence to support the charges.

Both Chandra and Bibit have been suspended from their duties because of their status as suspects, and President Susilo Bambang Yu-dhoyono has set up a five-member selection committee to shortlist candidates to replace them.

"This will damage Indonesia's image especially regarding its commitment to fighting poverty, and reduce international trust for investment in this country," Ifdhal said as quoted by Antara state news wire on Tuesday.

Ifdhal urged the police to speed up the legal processing of the two KPK deputy chairmen so they could have legal certainty.

"Should the police not have enough evidence to support these allegations, their names should be cleared."

The KPK is currently led by two deputy chairmen, Haryono Umar and M. Jasin, of its original team of five.

Aside from Chandra and Bibit, suspended KPK chief Antasari Azhar is also facing legal problems because of his implication in the murder of the director of a state-owned firm, Nasruddin Zulkarnen.

According to Attorney General Hendarman Supandji, his office handed over Antasari's murder case files to South Jakarta District Court on Monday.

"But we have yet to inform the President of this development," he said.

If the dossier was accepted by the court and Antasari becomes a defendant, he must be dismissed from his position.

The selection committee for the replacement KPK leadership is holding a series of intensive meetings to discuss potential candidates.

Anti-corruption activist Teten Masduki claimed he had turned down an offer for the position because there were no guarantees he would not be criminalized by police while doing the KPK's job.

Hendarman, on the other hand, said he had proposed 8,000 names of attorneys to the committee, and expected at least one to be appointed to chair the commission.

Antasari ‘framed’

Dropping a bomb: Former South Jakarta police precinct chief Williardi Wizard (right) testifies for former Corruption Eradication Commission (KPK) chairman Antasari Azhar (left), who is charged with murder, at the South Jakarta District Court on Tuesday. Williardi recanted his initial testimony and claimed he was pressured by police investigators to fall in line with a plot to frame Antasari. Persdanetwork/Bian Harnansa

High-ranking police officers ordered a senior officer to take part in a conspiracy to frame top antigraft official Antasari Azhar for murder, a key witness testified Tuesday.

“The dossier containing my testimony was arranged by the police,” Sr. Comr. Williardi Wizard said in his testimony at former Corruption Eradication Commission (KPK) chairman Antasari's trial at the South Jakarta District Court.

“I agreed with the content [of the dossier] after some high-ranking police officers approached me
about it.”

Williardi alleged that at midnight several days after the murder of businessman Nasruddin Zulkarnaen, a director of state pharmaceutical company PT Putra Rajawali Banjaran, the National Police's Brig. Gen. Irawan Dahlan picked him up at his home and took him to the Jakarta Police headquarters.

There, he was met by former National Police deputy chief detective Insp. Gen. Hadiatmoko, he went on, and was told to make a “necessary” dossier.

“Just do your best so that we can [use the dossier to] frame Antasari and you'll be free to go by tomorrow,” Williardi said, quoting Hadiatmoko.

He added the Jakarta Police's chief and deputy chief detectives were also present at the meeting.
“They said their target was only Antasari Azhar,” he said.

“The chief detective told me to sign a prepared statement similar to that signed by Sigid Haryo Wibisono [another suspect in Nasruddin's murder] because that was the instruction from a superior officer.”

Asked by Antasari's lawyers who the superior officer was, Williardi said, “The National Police chief.”
Antasari is on trial for masterminding the murder of Nasruddin, killed in a drive-by shooting in Tangerang in March.

“They said the National Police superior officers would guarantee everything and I would only face disciplinary action,” Williardi told the court.

At a hearing Monday in his trial at the Tangerang District Court, Williardi said South Jakarta Police chief Sr. Comr. Chairul Anwar was the one who had planned the murder.

“It was a state duty. The shooters and the kill order came from Chairul, having been issued directly by the National Police chief,” he said as quoted by Antara.

His testimony is the latest slap in the face for the police force, which has been widely lambasted for not dropping bribery, extortion and abuse of power charges leveled against suspended KPK deputies Bibit Samad Rianto and Chandra M. Hamzah, and for not arresting Anggodo Widjojo, the central figure in the alleged framing of both KPK deputies.

In their indictment of Antasari, prosecutors alleged the former antigraft chief had been having an affair with Nasruddin's third wife, golf caddie Rhani Juliani. They claimed Nasrudin had found out and later hounded Antasari’s family about the affair, which they said triggered Antasari to have Nasruddin killed, with assistance from media tycoon Sigid Haryo Wibisono, who provided the funding, and Williardi, the former South Jakarta Police chief, who recruited the hit men.

Sigid and Williardi are being tried separately in the case.

Upon hearing Williardi's testimony in Jakarta, an emotional Antasari covered his face with his hands and said, “God doesn't sleep ... The truth is finally revealed.”

Defense lawyer Juniver Girsang said the team would move for Antasari to be removed from custody.
“Williardi’s testimony is yet more proof that this case was plotted to frame Pak Antasari,” he said.

Antasari Azhar, Nasrudin Zulkarnaen & Rani Julianti

A drive-by shooting, the anti-corruption chief accused of murder, and a beautiful golf caddy.

Nasrudin Zulkarnain, the director of the company PT Putra Rajawali Banjaran (PRB), a pharmaceutical company and subsidiary of the state owned PT Rajawali Nusantara Indonesia (RNI), was shot twice in the head by a man on a Yamaha Scorpio motorcycle on 14th March 2009, as he was leaving the Modernland golf course, Tangerang, in his car.

A total of nine men have been arrested for the crime so far, they being:

* Antasari Azhar (head of KPK, the mastermind)
* Sigid Haryo Wibisono (a Commissioner of PT Pers Indonesia Merdeka (PIM)/ex-Golkar official (now PKB)/owner of Harian Merdeka, provided funding)
* Williardi Wizard/Wizar (Ex Chief of South Jakarta Police, facilitator and gave kill order to Edo)
* Heri Santosa (unemployed, drove the motorbike)
* Eduardus Ndopo alias Edo ("swasta", took the order to kill from Wiliardi Wizar)
* Jerry Hermawan LO ("swasta", contact between Edo and Wiliardi)
* Daniel Daen (security guard, the shooter)
* Fransiskus Tadon Keran alias AMSI (security guard, scoped out the area)
* Hendrikus Kia Walen alias Hendrik (security guard, gave final order to Fransiskus to carry out the killing)

Heri Santosa (driver) & Daniel Daen (gunman) soon gave themselves up to police, apparently out of fear for their own lives. The mens' lawyers claim they carried out the act because they were persuaded to view Zulkarnaen as an enemy of the state, because he was said to be plotting to ruin the 2009 national elections.

Of the nine four are from Flores.

On May 4th Antasari Azhar, as the head of the national Corruption Eradication Commission (Komisi Pemberantasan Korupsi (KPK)) the most famous among the nine, was questioned by police and named afterwards as the prime suspect in the organising of the killing.

He first came under suspicion when police found a text message on Zulkarnaen's mobile phone from Azhar saying:

You know the risk.

There are two versions as to why Antasari Azhar may have been moved to order a "hit" on Nasruddin:

* Corruption & RNI & Golkar - some believe the murder is connected to corruption cases involving PRB and RNI, including the ongoing trial of Ranendra Dangin, the former finance director of RNI. On March 30th Ranendra's trial began, for allegedly embezzling 45 billion rupiah from the sugar import monopoly controlled by RNI and the National Logistics Agency (Bulog). Zulkarnaen was expected to be called to give evidence against Ranendra.

In this version Antasari did the bidding of those he was supposed to be investigating and prosecuting, to protect them, and Golkar.
* Love triangle - involving a 22 year old university student, Rhani or Rani Julianti, who worked part time as a caddy at the Modernland golf course, where both Nasrudin and Antasari played. Both men are said to have paid for her services, both on the golf course and off. Last year she became Nasrudin Zulkarnaen's wife number 3.

It is said that Antasari became infatuated with Rani and that Zulkarnaen had threatened to expose the relationship to the gossip press. This is the theory that police seem to be working on.

Defence

Meanwhile Antasari Azhar denies the charges. His defenders say that he is being framed, probably by sources in the Attorney General's office, because Antasari led several aggressive investigations into corruption at the AGO.

The Attorney General's Office had named Antasari as a suspect on May 1st, while police at the time only classified him as an "interested party" or witness. However on May 4th police questioned him for 7 hours and later detained him.

Antasari Azhar was a political appointment to the KPK, heavily supported by Golkar, and PDI-P. Sigid Haryo Wibisono, one of his co-defendants in the case, did much lobbying work among parliament members to garner support for Antasari's nomination as KPK head. Antasari Azhar is not close to president Yudhoyono.

1 Million facebookers

A Facebook group has surpassed its goal of one million members in support of Indonesia's embattled antigraft deputies, Chandra Hamzah and Bibit Samad Riyanto.

The membership tally was approaching 1,010,000 as of mid-morning on Saturday.

'Gerakan 1.000.000 Facebookers Dukung Chandra Hamzah & Bibit Samad Riyanto' (Movement of 1,000,000 Facebookers Supporting Chandra Hamzah & Bibit Samad Riyanto) was launched after the two suspended Corruption Eradication Commission (KPK) officers were arrested last week on suspicion of abuse of power. It has been cited as an example of widespread popular support for the anticorruption leaders and the antigraft movement in general.

Bibit and Chandra were released on bail after a dramatic court hearing on Tuesday in which hours of wiretapped phone conversations appeared to reveal members of the National Police and Attorney General's Office conspiring with the brother of a graft suspect in a plot to frame the two men. President Susilo Bambang Yudhoyono has since vowed to devote his first 100 days in office to eradicating Indonesia's so-called 'judicial mafia'.