Businessman jailed in PT Asabri case

The Jakarta Post ,  Jakarta   |  Wed, 05/07/2008 9:39 AM  |  National

(JP/Ricky Yudhistira)

The East Jakarta District Court sentenced property businessman Henry Leo to six years in prison Tuesday for misappropriating funds from state insurance company PT Asabri.

The panel of judges said Henry (photo above) was proved to have misappropriated Rp 410 billion (US$45 million) in funds belonging to Asabri, which serves military and police officers.

The court also ordered Henry to pay Rp 70.9 billion in restitution to the state and Rp 30 million in fines.

Prosecutors had demanded seven years' imprisonment for Henry, whom they charged under the 1999 corruption law.

Henry was quick to appeal the verdict, insisting he was not guilty, Antara news agency reported.

The case began in 1996 when Henry, along with former Asabri director Maj. Gen. (ret) Subarda Midjaya, allegedly borrowed the Rp 410 billion from the company without approval.

Henry claimed he returned the loan in the form of assets worth the same amount. The assets included Plaza Mutiara Building (worth Rp 275 billion), 2.3 hectares of land on Jl. Sudirman in Jakarta and 30 plots of land.

But the Soldiers Housing Fund Management Agency (BPKRP), which controls Asabri, said it received only Rp 135 billion plus several plots of land.

The same court sentenced Subarda to five years in jail last April.

Prosecutors have also named businessman Tan Kian in the graft case.

Tan allegedly received US$13 million from Henry as a down payment for a building purchase. The money was taken from the funds Henry had borrowed from Asabri.

Tan has returned the money to the state via the Attorney General's Office.

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