Police question Adam Air execs over fund bungling

The Jakarta Post ,  Jakarta   |  Tue, 04/22/2008 10:40 AM  |  National

Police on Monday questioned the president director of PT Adam Skyconnection Airlines, Adam Aditya Suherman, and other executives of the budget carrier for their alleged involvement in the mismanagement of company funds.

The police are investigating the executives following a report from Adam Air's vice president overseeing financial affairs, Gustiono Kustianto, said Comr. Gen. Bambang Hendarso Dhanuri of the National Police.

"We're still investigating whether this is a criminal case or not. So far, they've been accused of money laundering, corruption and data manipulation," Bambang told reporters.

"We're also analyzing all of the company's contracts and documents, as well as its past activities."

On March 27, Gustiono reported Adam and seven other executives to the police for their alleged involvement in the misuse of company funds worth more than Rp 157 billion (US$17 million).

Gustiono also accused them of violating the minimum flight safety standards, which he said resulted in several accidents, including the Boeing 737-400 that crashed off the coast of South Sulawesi on Jan. 1, 2007, carrying 102 people. No bodies were recovered.

Bambang said the police would investigate the case if it could be linked to Adam Air's past accidents.

"If the police find that the alleged mismanagement has contributed to these accidents, we'll set up another investigation," he said.

Linking the alleged mismanagement to the accidents will require a lengthy investigation, National Police spokesman Insp. Gen. Abu Bakar Nataprawira said.

"But as soon as we get there, we'll hunt those responsible for the accidents," he said.

Adam Air stopped flying last month due to lack of funds. The government suspended its operating license in March for three months following a probe into the airline's operations after one of its jets skidded off a runway in Batam on March 10.

Adam refused to comment after being questioned by police for more than five hours at National Police Headquarters in South Jakarta.

"Talk to my lawyer, please," he said.

According to Bambang, more than three Adam Air executives were questioned by police on Monday, starting at around 10 a.m., but he refused to identify them.

"We're also looking at the auctions of Adam Air's assets to make sure those assets are returned to the state," he said. (dia)

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