Two Hospital Executives in Surabaya Arrested Over Graft

By webadmin on 11:59 am Jan 04, 2013
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Aries Sudiono

Surabaya. The East Java police have arrested two top executives at the Jemursari Islamic Hospital in Surabaya for allegedly embezzling Rp 1.4 billion ($145,000) in hospital funds, police said on Friday.

Heru Ariadi, the head of the hospital, and his deputy finance director, M. Lasdi, were arrested separately late on Thursday, the East Java police spokesman, Sr. Comr. Hilman Thayib said.

“The two were put in detention cells after undergoing marathon questioning, and are suspected of having violated article 374 of the Penal Code regarding embezzlement,” Hilman explained.

Police detectives have also confiscated evidence, including the bank accounts of the two as well as a receipt for the disbursement of the Rp 1.4 billion in cash.

Police believe that the two executives had cooperated in embezzling hospital funds several times by transferring money from the hospital account to a new personal account in phases.

An internal audit of the hospital finances uncovered the irregularities.

Aboe Amar Joesoef, deputy chairman of the RSI Jemursari Foundation which owns and operate the hospital, said the foundation reported the two executives to the police after efforts to get them to return the embezzled money had failed.

Aboe said the two showed no remorse or good will to return the money so the hospital handed the legal process over to the police.

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