Bali Prosecutor's Office Searches Sangeh Traditional Village LPD Regarding Cases Of Alleged Corruption Of IDR 130 Billion

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DENPASAR- Investigators from the Bali High Court searched the Sangeh Traditional Village Credit Institution (LPD), Badung Regency, Bali.

The search was carried out to find evidence related to alleged criminal acts of corruption in money management at the Sangeh Adat of Village Credit Institution (LPD).

Head of the Legal Information Section of the Bali Prosecutor's Office, A Luga Harlianto, said that during a search, the Bali Prosecutor's Office sent 10 investigators down.

"10 investigators came to the Sangeh Traditional Village LPD Office to search, starting at 08.00 WITA until 15.00 WITA", said Luga, Friday, March 25.

Investigators are looking for documents related to the finances of the Sangeh Traditional Village LPD. From the results of the search, investigators secured three boxes of documents which were then taken to the Bali Prosecutor's Office.

"All documents related to the finances of alleged criminal acts of corruption in the management of the Sangeh Adat LPD will be investigated by investigators, if there is a connection with this alleged corruption, the investigator will confiscate the documents and then submit a determination to the court as evidence", said Luga.

The Badung Prosecutor's Office is investigating allegations of corruption at the Village Credit Institution (LPD) of Sangeh Traditional Village, in Badung Regency, Bali, and the potential loss to the state is estimated to be up to IDR 130 billion.

The Head of the Badung High Court, I Ketut Maha Agung, said his party had conducted an investigation for 1.5 months into alleged corruption at the Sangeh Traditional Village LPD, and today the case has been escalated to the investigation stage.

From the results of the investigation into the provisional allegations of state financial losses based on the results of the audit submitted by Bendesa Adat Sangeh, it was approximately Rp. 130,869,196,075.68. In addition, during the investigation, the investigative team examined as many as 18 witnesses, including from the LPD Chair, LPD management, the Supervisory Agency for the previous period, and the supervisory agency currently serving.

Meanwhile, the results of the investigation found several weaknesses that made LPD Sangeh suffer losses, including not having written SOPs both in terms of lending, time deposits, and savings.

Then, the lack of competence and honesty of HR in compiling financial reports and in compiling financial reports does not record in real-time.

In addition, the Sangeh Traditional Village LPD is not guided by the principle of prudence in granting credit as well as the weak control of credit lending procedures by the Sangeh Traditional Village LPD and does not implement Bali Governor Regulation Number 14 of 2017 concerning implementing regulations for Bali Province regional regulations, Number 3 the Year 2017 concerning Village Credit Institutions in managing their financial liquidity.

"For the forms of irregularities that occurred at the Sangeh LPD, there were several fictitious creditors, the recording of the difference in savings between the balance sheet and the nominative list, and the existence of bad loans that were not accompanied by collateral", he said.