North Sumatra Prosecutor's Office Investigate Fictitious Credit Cases At BTN Medan

MEDAN - The High Prosecutor's Office (Kejati) of North Sumatra is investigating an alleged fictitious credit case worth Rp39.5 billion at PT Bank Tabungan Negara (BTN) Medan Branch.

"Investigators have examined dozens of witnesses, both from banks and debtors and other related parties in the distribution of credit funds," said Sumangggar Siagian, Head of the North Sumatra Attorney General's Office, as quoted by Antara, Thursday, June 10.

Sumanggar explained that investigators are still collecting evidence and calculating losses from fictitious credit loans in the case.

Sumanggar explained that the alleged fictitious credit corruption case occurred in 2014. PT KAYA applied for a loan credit to BTN Medan Branch amounting to Rp39.5 billion and applied for collateral for 93 Building Use Titles on behalf of PT ACR.

In the application for 93 Building Use Titles, only 58 Building Use Titles were used as collateral, and a Deed of Assignment of Mortgage (APHT) was made. While 35 Building Use Titles are known to have not been carried out the Deed of Grant of Mortgage (APHT).

Then in June 2016 to March 2019, the 35 certificates were sold to other people without the permission of PT BTN Medan Branch.