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Consumer finance firm allegedly defrauds banks of Rp 14 trillion
Police have arrested and named five SNP executives suspects in the case.
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National Police deputy director for economic crimes Sr. Comr. Daniel Silitonga said the company reportedly defrauded 14 banks between 2016 and 2017 by manipulating its receivables list, which it used as security for credit applications to the banks. (Shutterstock/File)
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onsumer finance company PT Sunprima Nusantara Pembiayaan (SNP) Finance, a subsidiary of the Columbia group, is suspected to have committed credit fraud resulting in losses of Rp 14 trillion (US$940 million), police said on Monday.
National Police deputy director for economic crimes Sr. Comr. Daniel Silitonga said the company reportedly defrauded 14 banks between 2016 and 2017 by manipulating its receivables list, which it used as security for credit applications to the banks.
“SNP added to, duplicated and reused this receivables list so that creditors would dispense as much as they asked for according to the list,” Daniel told reporters on Monday as quoted by kompas.com.
He said SNP had obtained the receivables list from its affiliate, PT CMP, which sells electronic goods and furniture and offers credit facilities to customers for payment.
Police have arrested and named five SNP executives as suspects, identified as president director DS, operational director AP, finance director RA, accounting manager CDS and assistant finance manager AS.
“So far, these five people are the ones we consider to bear the most responsibility and were directly involved in the crimes committed by PT SNP,” Daniel said, adding that police were still looking for three other people with the initials LC, LD and SL.
He also said the suspects would likely be charged with fraud, embezzlement and money laundering.
SNP corporate secretary Ongko Purba Dasuha said the company respected the ongoing legal process but questioned where police derived the Rp 14 trillion amount from.
“According to the PKPU [debt postponement petition] process that began in May 8, 2018, [SNP] has debts totaling Rp 4.07 trillion, consisting of Rp 2.2 trillion in secured credit owed to 14 banks and Rp 1.85 trillion owed to 336 medium-term note holders,” Ongko told The Jakarta Post on Tuesday.
The Columbia group has been in dire financial straits for some time, with SNP filing for bankruptcy last April. The company defaulted on paying interest on two series of medium-term notes totaling Rp 6.75 billion (US$475,000) and had its business activities frozen by the Financial Services Authority in May. (kmt/ahw)
