Bank Bali defends decision to prosecute in Singapore<\/p>\n
JAKARTA (JP): Hong Kong-based Bali International Finance Ltd.,
\na unit of publicly listed Bank Bali, defended on Friday its
\ndecision to file a civil lawsuit against businessman Bambang
\nSutrisno at the court in Singapore.<\/p>\n
The legal representative for Bank Bali, Hotman Paris Hutapea,
\nsaid that the widely criticized move was the only way for the
\nbank and seven other claimants to recoup their money from
\nSutrisno in a US$16.5 million loan dispute.<\/p>\n
\"What we did was perfectly legal because the law says that
\nclaims should be filed in a court where the accused lives,\"
\nHutapea said, noting that Sutrisno had lived in Singapore for
\nover a year.<\/p>\n
Hutapea said that the fact that Indonesia did not have a
\nreciprocal treaty with Singapore made it impossible to obtain the
\nmoney from Bambang through Indonesia's court system.<\/p>\n
\"If we filed the suit in Jakarta, even if we won the
\nlitigation, the court would not be able to execute the decision
\nbecause Sutrisno's assets are in Singapore. It would merely be a
\npaper victory,\" he said.<\/p>\n
Bank Bali's move has been criticized by legislators and local
\nattorneys as demeaning the country's court system.<\/p>\n
Bali International Finance acted as the lead manager and agent
\nfor the $16.5 million loan syndicate of nine domestic and foreign
\nfinance institutions for PT Surya Supratama Finance in Jakarta.<\/p>\n
The syndicated loan was personally guaranteed by Bambang
\nSutrisno under an indemnity and guarantee agreement with Bali
\nInternational Finance.<\/p>\n
Sutrisno controlled 90 percent of Surya Supratama.<\/p>\n
When the company was unable to repay the loans, eight
\ncreditors from the syndicate filed a lawsuit in Singapore against
\nSutrisno.<\/p>\n
Hutapea said that Sutrisno, in his capacity as the guarantor,
\nagreed in the loan agreement to bypass his right to impunity if
\nthe loan was not repaid.<\/p>\n
Under the law, a loan guarantor cannot be sued by creditors
\nunless he or she agrees to bypass this right to impunity.<\/p>\n
Creditors in the loan syndicate include Bank Bali's Cayman
\nIsland branch, the Hong Kong Chinese Bank Ltd., Cosmos Finance
\nLtd. of the locally owned Bank Buana and the Duta International
\nFinance Company of Bank Duta in Jakarta.<\/p>\n
The syndicate also includes Bumi Daya International Finance
\nLtd., a unit of state Bank Bumi Daya, Bank Dagang Nasional
\nIndonesia (BDNI) Finance of the government-run BDNI, Danamon
\nFinance Company Ltd. of the state-run Danamon and several
\nundisclosed local private banks.<\/p>\n
All of members of the loan syndicate, except for Bank Bali,
\nare headquartered in Hong Kong.<\/p>\n
Sutrisno is also a former shareholder of Bank Surya, which was
\nclosed down by the government last April for insolvency.<\/p>\n
Last year, Sutrisno sued his former business partner,
\nSudwikatmono, in Jakarta over disputed acquisition deals and
\nlodged complaints with the National Police against the latter for
\ndefamation, slander and contempt.<\/p>\n
Sutrisno's wife, Gina Widjaja, recently sued Bali
\nInternational Finance and her husband at the West Jakarta
\ndistrict court because the assets Sutrisno pledged for the
\nindemnity agreement was jointly owned by the couple.<\/p>\n
Since the indemnity agreement was made without her approval,
\nMrs. Widjaja demanded that the court declare the agreement
\nvoid. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bank-bali-defends-decision-to-prosecute-in-singapore-1447893297",
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