Jakarta – The Attorney General's Office (AGO) has uncovered millions of suspicious transactions involving state-owned insurance company Jiwasraya's investment instruments, lending credence to accusations of investment mismanagement that led the insurer into serious liquidity issues.
Deputy attorney general for special crimes Adi Toegarisman said the AGO had initially uncovered 55,000 suspicious transactions among Jiwasraya's stock investments. However, as the investigation progressed, the office discovered millions of such transactions, according to AGO director of investigations Febrie Adriansyah.
Febrie went on to say that the office had also discovered questionable transactions in the mutual funds Jiwasraya invested in.
"There are so many of these transactions made between 2008 and 2018. Investigators and the BPK [Supreme Audit Agency] need to work hard," he said on Tuesday as quoted by kontan.co.id.
He said that given the sheer number of such transactions, the investigation would no longer focus on the value of the transactions, but rather on discovering any indication that the transactions were deliberate efforts to cause Jiwasraya's financial losses.
"Investigators will need ascertain who made the transactions, as well as to determine what type of stocks were being traded," Febrie said.
Jiwasraya failed to pay out on customers policies, worth up to Rp 16 trillion (US$1.2 billion), that fell due in December, prompting the Attorney General's Office (AGO) to launch a corruption investigation.
Authorities estimate the alleged corruption caused Rp 13.7 trillion (US$1 billion) in state losses. The estimate, however, might yet increase during the ongoing investigation. (rfa)