Police to Investigate Alleged Misuse of Lion Air Crash Compensation Given by Boeing

The Indonesian National Police (POLRI) will hold an internal inquiry to decide whether to launch a criminal investigation into alleged misappropriations of Boeing’s funds managed by Islamic charity organization (ACT).

Boeing reportedly channeled $9.2 million to ACT to compensate 68 of the 189 victims of Lion Air JT610 MAX 737 crash that took place on 18 October, 2018.

"We plan to run an inquiry to see if there’s enough [evidence] to commence an investigation,” National Police spokesperson Chief Comr. Nurul Azizah said at a news conference at police headquarters in Jakarta.

As compensation for the plane crash, Boeing provided cash and non-cash compensation funds in the form of social funds of $144,500. It is alleged that ACT did not realize all the funds obtained from the U.S. aircraft maker to the heirs of the victims, but for personal activities or interests.

"Some of the social funds are used to pay the salaries of the chairman, administrators, coaches, and staff of ACT and are also used to support facilities and activities or personal interests," National Police spokesman Brigadier General Ahmad Ramadhan said.

Nurul said the Police have already interrogated ACT founder Ahyudin, current ACT president Ibnu Khajar, and two managers in charge of operations and financial management.

ACT reportedly did not inform the heirs of the number of funds they received from Boeing.

Ahyudin was allegedly paid around $16,670 in monthly salary while he was the president of the ACT until January. The amount is 54 times the basic salary of an average worker in Jakarta, as per reports in the Indonesian media.

A team of auditors will be hired by the Police as part of the inquiry.

Indonesia’s anti-money laundering agency, the Financial Transaction Reports and Analysis Center (PPATK), has also accused ACT officials of financial fraud and said there were suspicious transactions involving the organization’s bank accounts. ACT reportedly managed $67 million in public funds a year.

Ahyudin denied any wrongdoing after he was interrogated by the Criminal Investigation Agency (Bareskrim).