Corrupted insurance funds laundered at overseas casinos – prosecutor

State-owned insurer said to have lost over US$1 billion

Corrupted insurance funds laundered at overseas casinos – prosecutor

Insurance News

By Gabriel Olano

Indonesian businessman Heru Hidayat, who is linked to the corruption scandal surrounding state-owned insurer PT Jiwasraya, allegedly gambled the money in overseas casinos, according to the state prosecutor.

The money, which was obtained from corruption and mismanagement of the state health insurance fund, was laundered at casinos in Singapore, New Zealand, and Macau, Antara News reported.

“Defendant Heru Hidayat concealed the true origin, source, location, designation, or ownership of assets by placing the money in Freddy Gunawan’s account with the objective of covering up the origin of the assets,” Bima Suprayoga, prosecutor for the Attorney General, said at a hearing of the Jakarta Corruption Court.

Hidayat was arrested in January over charges stemming from the Jiwasraya corruption fiasco. The insurer lost around IDR16.8 trillion (US$1.1 billion) in failed investments in firms linked to Hidayat and another businessman, Benny Tjokrosaputro.

The prosecutor alleged that Gunawan paid off Hidayat’s casino gambling debts using the money. According to the report, multiple payments were made to the following casinos: Marina Bay Sands and Resorts World Sentosa in Singapore, MGM in Macau, and Sky City in New Zealand. Some of the money was also used to renovate a building and to buy a sailing ship.

If found guilty, Hidayat could face up to 20 years in prison and a fine of IDR10 billion (US$703,000).

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