Saturday, July 25, 2009

Five years prison for Sugiharto Wiharjo

Tanjung Karang district court, Lampung, sentenced Sugiharto Wiharjo, owner of Tripanca Bank, five years prison for embezzling Rp750 billion funds from the bank. Such a light sentence!
The sentence is lighter than prosecutors' demand of seven years prison. Worse, the businessman is only ordered to pay Rp50 billion fines for the crimes.
Court found Sugiharto Wiharjo AKA Alay of embezzling Rp750 billion from the bank he owned through various "schemes". Two directors of Tripanca Bank, Podijono Wiyatno and RE Soedarman, had also been sentenced three years and three months jail plus Rp10 billion fines in the same case.
According to witnesses and evidences found by police, the convicts embezzled the funds through dubious loans to 177 names. Tripanca Group, parent of Tripanca Bank, collapsed late last year leaving five major banks (BRI, Mandiri, Deutsche Bank, BEI, and Mega) in a massive Rp1.7 trillion losses (bad loans). Public funds from two local administrations in Lampung at the combined amount of Rp135 billion also disappeared from the bank. It is not clear how these administrations will recover. Similarly, it is not clear how the five banks will recoup their money.
But five years prison is clearly a light sentence. Prosecutors may have to read Bernie Maddoff's case.

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