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Bogus public fund management firms found
A joint governmental team has uncovered 36 investment firms allegedly involved in the illegal collection and management of public funds
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A joint governmental team has uncovered 36 investment firms allegedly involved in the illegal collection and management of public funds.
Wahyu Hidayat, the head of the team set up in June last year to prevent and combat illegal public fund management, said Monday that of the 36 firms, 11 did not possess operating licenses.
"Another 15 investment companies will be investigated further by authorized institutions, including Bappebti (future exchange supervisory board), the National Police, the central bank, while the rest will be further investigated by our team," he told a press conference.
Guilty companies will face criminal charges, he said.
The team comprises officials from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), the central bank, the National Police, the Financial Transaction Reports and Analysis Center (PPATK), the Directorate General of Domestic Trading and Bappebti.
Wahyu said the losses inflicted as a result of the illegal activity would be revealed after relevant institutions, including the police, had further investigated the companies.
He said public complaints had initially drawn the attention of the body to the 36 firms.
"They usually recruit naive fresh graduates as employees and then persuade them to invest money."
The team found that of the 36 companies, those that had been officiated had used their operating licenses to fool their clients, said Zainal Arifin of the directorate general of domestic trading at the Trade Ministry.
"For instance, some companies applied to Bapepam for licenses to run management consulting or multi-level marketing businesses, but in reality they do not operate as they advertise," Zainal said. (rff)
