Big Balicon Fraud Investigators Find only Rp38m
Police have so far found only Rp38 million (US$4.2 million) of the multibillions of rupiah in depositors’ funds missing from local insurance company PT Bali Consulat Life Assurance (known as Balicon), whose owner and chief executive, I Made Paris Adnyana, was arrested on November 29.
Missing funds are estimated to total at least Rp340 billion ($37.7 million) but investigators do not know the precise amount because they are still trawling through company accounts and records. The Rp38 million so far indentified was found in three accounts of 11 so far examined.
Balicon’s corporate headquarters are in Jembrana. It has thousands of clients — mainly civil servants, teachers and police — in Bali, East Java and elsewhere in Indonesia.
Adnyana was arrested after clients were repeatedly unable to access their funds when they found promised interest earnings had not be credited to their accounts.
Police investigators have created two teams to progress their inquiries, one tasked with sorting out the paperwork and the other to establish the status of Balicon assets and where they are accounted for.
Bali Police spokesman Gede Sugianyar said this week the funds so far identified were in personal accounts operated by Adnyana.
One office account investigated had a zero balance and another held only Rp16 million ($1,776). Eight other accounts found by investigators are now being audited.
Sugianyar said a search for Balicon assets had not yet fully begun because investigators were still focusing on identifying accounts. He appealed to Balicon clients to come forward and tell police how much money they had invested with the company, which operated by taking depositors’ funds and offering interest on the money.
“We encourage people to provide information on Balicon assets,” he said.
Balicon, which police say is an investment company under the guise of an insurance organisation, has more than 21,000 clients. It has offices throughout Bali and in Surabaya and Jombang in East Java.
The case unfolded last month after dozens of customers visit a Balicon branch in Jl PB Sudirman, Denpasar, after they had been unable to access their funds and had not received their promised 5 percent net interest return for three months.
Last Saturday police in Singaraja closed and sealed the local Balicon office as part of the investigation.
Adnyana could face up to 15 years jail if charged and convicted under the Insurance Act No 2 of 1992.Filed under: Headlines