A politically connected lawyer and his business partner have been reported to the Indonesian authorities for alleged money laundering activities that included the use of a fictitious letter of credit (L/C).

The lawyer, Muhammad Misbakhun, is associated with the opposition Prosperous Justice Party (PKS) while the business partner has been named as Franky Ongkowardojo.

Accusations

Presidential aide, Andi Arief, reported the two men to the police.

He accuses Misbakhun of laundering US$22.5 million using a fictitious L/C issued by Bank Century (now renamed Bank Mutiara) to finance wheat imports from Saudi Arabia.

Bank Century

The aide alleges that the lawyer had been close to Robert Tantular, the former part owner of Bank Century.

Tantular is currently in jail for other charges of bank fraud that also involved widespread L/C misuse.

Denial

Misbakhun, who has been involved in the investigations of the government's controversial bail out of Bank Century, denies the allegations.

He claims the L/C was used to purchase chemicals, not wheat.

The deal was cancelled, therefore the L/C was defaulted rather than fictitious according to the lawyer.

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