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Police continue interrogating executives in ACT charity fraud case

Jakarta Post - July 13, 2022

Jakarta – The National Police's Criminal Investigation Department (Bareskrim) is continuing with its interrogation of two senior executives over alleged embezzlement at charitable organization Aksi Cepat Tanggap (ACT).

Investigators from the department's Special Economic Crimes unit have been questioning ACT founder and former president Ahyudin as well as its current president, Ibnu Hajar, since Friday.

The police have also questioned a number of employees at the organization, which bills itself as a humanitarian organization that provides "philanthropic fundraising services", according to its LinkedIn profile.

Ahyudin and Ibno stated separately on Monday that the police had asked them about the organization's legal status and structure, Kompas reported.

The police are investigating the nonprofit NGO over alleged violations of the laws on charitable foundations and money laundering.

Last week, the Financial Transaction Reports and Analysis Centre (PPATK) froze 60 accounts affiliated with the organization at 33 financial institutions.

According to a review the state-run money laundering watchdog started in 2018, the PPATK discovered transactions worth Rp 30 billion (US$1.9 million) that were made between ACT and a company owned by one of its founders.

The watchdog also found indications that ACT had failed to distribute the funds it had collected from donors for their stated purpose. The watchdog said the organization allegedly used the funds to generate profits instead of disbursing them as intended.

In its July 2 edition, Tempo magazine reported that ACT had allegedly embezzled the funds donated from members of the public to purchase luxury cars for its top executives and other luxury expenses unconnected to the organization's philanthropic activities.

ACT president Ibnu confirmed that its executives had received monthly salaries of over Rp 250 million in early 2021, but that the figures were lowered following a drop in donations in September that year.

He also said that the organization used 13.7 percent of the donations it received to cover its annual operating costs, including paying employee salaries.

The Social Affairs Ministry has revoked ACT's charity collection license, saying that ACT had violated a regulation stipulating that licensed organizations may use a maximum 10 percent of its charity funds toward operating costs.

Source: https://www.thejakartapost.com/indonesia/2022/07/13/police-continue-interrogating-executives-in-act-charity-fraud-case.htm