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Businessman arrested for fuel smuggling
The National Police have arrested the owner of a vessel-charter firm, Achmad âAbopâ Machbub, for allegedly running a ring smuggling subsidized fuel from Riau Islands into the international black market over the past five years
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he National Police have arrested the owner of a vessel-charter firm, Achmad 'Abop' Machbub, for allegedly running a ring smuggling subsidized fuel from Riau Islands into the international black market over the past five years.
The police's economics and special crimes director, Brig. Gen. Kamil Razak, said on Monday that Abop was arrested at the Crowne Hotel in Central Jakarta early on Sunday.
'We detained AM [Abop] after receiving testimony from 30 witnesses and four suspects in the case. The four suspects claimed that AM ran [the smuggling operation] with the help of his sister,' Kamil said during a press conference at the Financial Transaction Reports and Analysis Centre (PPATK) headquarters in Jakarta.
According to a PPATK report, Abop's sister, Niwen Khairiah, a low-ranking civil servant in Batam, Riau Islands, logged banking transactions worth Rp 1.3 trillion (US$110.3 million) between 2008 and 2013.
A police investigation found that Abop and Niwen had conspired with Yusri, a senior supervisor of state-owned oil and gas enterprise Pertamina in the Riau town of Dumai, and two temporary workers employed by the Navy, identified as Dunun and Aripin, in running the ship-to-ship fuel-smuggling operation.
Yusri, who oversees fuel shipments in the province, and Dunun allegedly assisted Abop's vessels to illegally load subsidized fuel from Pertamina tankers offshore four times a month since 2008.
Abop sold the stolen subsidized fuel to ships passing through international waters just off Riau. The fuel was sold below the market price ' gasoline was sold at Rp 3,500 per liter, diesel was sold at Rp 4,500.
Niwen converted the illicit proceeds into Singaporean dollars and rupiah and distributed the cash to several individuals who made the smuggling scheme possible, with the assistance of Aripin.
'We believe that NK [Niwen] has a currency exchange company in Batam,' Kamil said.
Niwen, Yusri, Dunun and Aripin had been named suspects and taken into police custody prior to Abop's arrest. 'In the case, we have seized a ruko [shop-house], heavy vehicles, cars and certificates for 65 buildings and plots of land in Bengkalis,' Kamil said.
The police have also frozen bank accounts belonging to the five suspects and several other individuals linked to the case.
The suspect will be charged with multiple violations of the 2001 Corruption Law and the 2010 Money Laundering Law and the Criminal Code.
When asked if the police would question Yusri's supervisors in Pertamina, Kamil said: 'Let's see. We'll only summon someone based on facts.'
Also at the press conference, PPATK chairman Muhammad Yusuf applauded the work of the police in uncovering the smuggling operation.
'I hope that this case becomes an inspiration for regional police in other regions. This case involves a businessman, officials and also other parties. I hope that we can help police investigators,' Yusuf said.
