Police urge KKM members to stay calm, probe continues

Police pleaded with duped members of a cooperative to stay calm Monday, saying they were doing their best to recover the stolen money.

The Bali police held a meeting with representatives for the members of the recently shut-down Develop Karangasem Cooperative (KKM) and two suspects in the fraud case at the provincial police headquarters in Denpasar.

"So what news can we take back to the people, sir?" said Wayan Kari Subali, one of the representatives, to the police chief when the meeting was nearly over.

Bali Police chief, Insp. Gen. Teuku Ashikin Husein said police officers were still determining the exact amount of losses incurred by the members and establishing how they could claim the deposits back.

"The funds in question are still being counted," Ashikin said, obviously impatient with the question.

"It will be impossible for the members to receive 100 percent of their investment in return because the suspect still has to pay employees' salary and other overhead costs. "Don't think that this process is going to be easy."

Also attending the meeting was Karangasem Regent I Wayan Geredeg and Bali Police deputy chief Brig. Gen. I Ketut Adria.

Ashikin said police had compiled a list with around 20,000 members on it, but it was believed the total number of members could have reached 60,000.

He also said a specific time frame had not been established and police could not yet conclude what exact percentage of the deposits would be returned to members.

Jero Suteja, a representative from Kubu district, said he would announce the update of the police investigation to the district but they had hoped the process would be completed before the Hindi Galungan festivity on March 18.

"They will need a lot of money for this religious ceremony," he said.

Meanwhile, Regent Geredeg said he expected victims of the Ponzi scheme run by the cooperative to respect the legal processes so their money could be returned quickly.

"These current demonstrations concern me greatly. I ask that those involved please do not provoke the legal process," he said.

According to Beritabali.com, Geredeg's private residence became the target of an ugly demonstration Monday afternoon.

Around 400 protesters swarmed the regent's house on Jl. Samanhudi in Subagan, Karangasem, after they failed to meet with Karangasem councilors at the regency legislative council building.

The protesters vented their anger by hurling stones and burning tires at the regent's house, with police being deployed to protect the property.

Established in 2006, the KKM was shut-down by police following a raid last month. The cooperative attracted police attention after it managed to significantly multiply its capital in a short time.

The co-op promised a 150 percent interest rate return in just three months to investors interested in depositing money in the scheme.

Police have seized more than Rp 280 billion (US$23.5 million) in cash, 22 kilograms of gold and jewelry and vehicle ownership documents, bringing the total value of assets under police custody to more than Rp 310 billion.

Indah Setiawati , The Jakarta Post , Denpasar | Tue, 03/03/2009 1:47 PM | Bali