Lampung police has arrested a former top official at Central Lampung Regency's finance agency under allegations that he has embezzled Rp. 28 billion (US$2.8 million) in state money, tempointeraktif.com has reported.
Herman Hazbullah, former head of the Revenue and Financial Management Agency, was arrested Tuesday evening for relocating funds from the regency budget to the collapsed Bank Tripanca.
Herman was arrested after the Development Finance Comptroller (BPKP) confirmed the state's loss of the funds.
The owner of the bank, Sugiaharto “Alay” Wijaya, was convicted earlier this year for fictitious loan schemes and savings fraud in his bank.
State prosecutors had also named East Lampung Regent Satono a suspect for transferring Rp. 107 billion of the regency’s 2008 budget money to the collapsed bank.