Bank Mandiri told to improve image<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Beleaguered Bank Mandiri needs to repair its tarnished image and
\nregain the public trust it lost after the unveiling of a high-
\nprofile loans scandal there, a top minister says.<\/p>\n
\"Bank Mandiri should put an end to all outstanding issues,
\nespecially in reducing its potential bad debts,\" State Minister
\nof State Enterprises Sugiharto said after his first meeting with
\nthe bank's new board of commissioners and directors on Friday.<\/p>\n
\"The bank's management should rebuild its image because
\ncurrent perceptions ... have been influenced by the news
\nregarding its bad credit,\" Sugiharto said.<\/p>\n
He said the government, as the bank's majority owner with a 70
\npercent share, viewed the healthy operation of Mandiri as crucial
\nto the nation's economy.<\/p>\n
\"The bank is instrumental to the success, and failure, of the
\neconomy,\" he said, adding that the bank's assets worth Rp 248
\ntrillion (US$26.26 billion) represented 22 percent of all
\nIndonesian bank assets, the largest single share of any bank.<\/p>\n
Sugiharto reiterated to potential investors that despite the
\ninvestigations, Mandiri, remained financially sound.<\/p>\n
\"Based on the latest report from Bank Indonesia, Mandiri is
\nstill classified as a healthy bank,\" the minister said. \"However,
\nthe bank must increase the quality of its productive assets.\"<\/p>\n
Newly elected Bank Mandiri president director Agus
\nMartowardojo said the new management would fully cooperate with
\ninvestigators in probing 28 troubled accounts in the bank.<\/p>\n
Agus replaced former president director ECW Neloe, who was
\ndeclared a suspect this week along with two other directors by
\nthe Attorney General's Office in the alleged lending scam.<\/p>\n
After the meeting, corporate secretary Nimrod Sitorus said 22
\ncreditors were currently being investigated by the Supreme Audit
\nAgency (BPK) for irregularities in their accounts worth an
\nestimated Rp 12 trillion.<\/p>\n
Agus said the bank would take necessary measures to reduce
\npotential bad loans by improving its assessment methods, internal
\ncontrols, compliance supervision and risk management system.<\/p>\n
\"We will also improve our human resources to make sure (the
\nscandal) doesn't happen again,\" he said.<\/p>\n
He added that management would carefully study all the plans
\nput in place by the previous directors, including future
\nacquisitions and bond issues. (002)<\/p>",
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"sponsor": "Okusi Associates",
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