Two officials face trial over alleged mismanagement of BLUD funds amounting to SGD 70,000

The Batam Prosecutor’s Office has officially submitted the case file on the alleged corruption scandal at RSUD Embung Fatimah to the Tanjungpinang Anti-Corruption Court. The case involves two suspects, identified as D and M, accused of financial mismanagement and misappropriation of hospital funds. The corruption, which allegedly took place in 2016, resulted in a state loss of approximately SGD 70,000 (IDR 840 million). The court is now expected to schedule the first trial session soon.

The corruption case at RSUD Embung Fatimah has been under investigation since 2024 when prosecutors identified irregularities in the management of public hospital funds. The case revolves around the alleged mismanagement of BLUD funds allocated for medical equipment and operational expenses. The two suspects, who held key financial positions at the hospital, are accused of manipulating financial records, approving fraudulent transactions, and siphoning off public money. This case marks another scandal at RSUD Embung Fatimah, following previous corruption cases related to procurement fraud in 2014 and 2011.

The corruption allegations first surfaced in late 2024 when the Batam Prosecutor’s Office received reports of financial irregularities at RSUD Embung Fatimah. An investigation was launched, and on November 22, 2024, the office formally charged two suspects: D, a former financial officer, and M, the hospital’s head of finance. Both were accused of orchestrating a scheme to embezzle funds from the hospital’s BLUD budget in 2016.

The investigation found that D, who served as BLUD treasurer from January to April 2016 and as assistant treasurer for the remainder of the year, had been inflating budget reports and creating fictitious transactions. Meanwhile, M, in his role as financial administrator, allegedly approved these fraudulent reports despite knowing they contained fabricated expenses. The total amount of misappropriated funds is estimated to be IDR 840 million (SGD 70,000).

Prosecutors revealed that these fraudulent activities were carried out through document falsification, including duplicating invoices and generating false expense reports. The scheme was designed to funnel hospital funds into personal accounts, ultimately depriving RSUD Embung Fatimah of essential resources meant for patient care and medical equipment procurement. Further investigations indicated that M had approved the transactions in exchange for financial incentives.

This is not the first corruption scandal linked to RSUD Embung Fatimah. In 2016, the Batam Prosecutor’s Office charged former hospital director Fadila RD Malarangan in a corruption case involving medical equipment procurement from 2014. Similarly, in 2017, the National Police uncovered another corruption case at the same hospital related to a fraudulent procurement project in 2011, which involved the misuse of IDR 18 billion (SGD 1.49 million). These repeated incidents have raised concerns over the integrity of financial management within Batam’s public health institutions.

With the case now officially submitted to the Tanjungpinang Anti-Corruption Court, the prosecution awaits a trial schedule. According to Batam Prosecutor’s Office spokesperson Tohom Hasiholan, both suspects have been transferred to a detention facility in Tanjungpinang. “They are now officially under the jurisdiction of the court and will face trial soon,” he stated. If found guilty, D and M could face significant legal consequences, including lengthy prison sentences and fines.

The case highlights persistent corruption issues within public institutions in Indonesia, particularly in Batam’s healthcare sector. The misappropriation of funds intended for hospital improvements not only undermines public trust but also directly impacts patient care. Authorities have pledged stricter financial oversight to prevent similar cases in the future. The trial of D and M will be closely watched as a test of the Indonesian judiciary’s commitment to combating corruption.

Sources: Batam Today (2025), Batam Pos (2025)

Keywords: Corruption Case, RSUD Embung Fatimah, Batam Prosecutor, Tanjungpinang Court, BLUD Fund Misuse