Bapepam finalizes six firms of breaching rules<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nhas imposed sanctions on six firms, four of which belong to major
\nbusiness groups Bakrie, Tirtamas and Djajanti, for breaching
\nregulations.<\/p>\n
The six firms are Bakrie's financing firm PT Bakrie Finance
\nCorporation; Tirtamas' cement producer PT Semen Cibinong;
\nDjajanti's fishery concerns PT Daya Guna Samudra and PT Bintuni
\nMinaraya; footwear manufacturer PT Super Mitory Utama; and
\nholding company PT Dharmala Sakti Sejahtera of the Dharmala
\nGroup.<\/p>\n
The agency said in a statement on Thursday it had imposed
\nadministrative sanctions and fines of between Rp 61 million
\n(US$7,300) and Rp 1 billion on the six publicly listed companies.<\/p>\n
The agency's statement said Bakrie Finance not only delivered
\nits financial report late, but also violated accounting
\nprinciples and misused capital raised during its right issue.<\/p>\n
\"We impose a penalty of Rp 61 million for reporting the
\ncompany's financial statement 61 days late,\" the statement said.<\/p>\n
Bapepam also imposed an additional fine of Rp 500 million on
\nthe company's boards of directors and commissioners for allowing
\nthe issuance of misleading financial reports.<\/p>\n
In addition, the capital market watchdog also ordered the
\ncompany to soon hold a public expose (presentation) to disclose
\nthe use of the proceeds from the company's recent limited public
\noffering or rights issue.<\/p>\n
Bapepam said that Bakrie Finance had diverted the use of Rp
\n475 billion raised during its right issue to purposes other than
\nthose stipulated in the company's prospectus issued before the
\nlimited share offering.<\/p>\n
The agency also imposed a fine of Rp 1 billion on Semen
\nCibinong's boards of directors for their failure to prove the
\ncompany's $250 million deposit as stated in its financial report.<\/p>\n
\"This carelessness affects the going concern of the company
\nand has caused its auditor to issue a disclaimer on the company's
\nfinancial report,\" Bappepam said.<\/p>\n
Semen Cibinong has said it placed the money in two accounts in
\nthe Far East Bank in the Cook Islands and at the Bank of Central
\nPacific in Vanuatu.<\/p>\n
But the company failed to convince Bapepam of the existence of
\nthose deposits, as Semen Cibinong refused to publicly disclosed
\nthe information.<\/p>\n
\"We order the company's board of directors to pay a penalty of
\nRp 1 billion as a consequence of their negligence in carrying out
\ntheir duties,\" the statement said.<\/p>\n
Furthermore, the agency required that Semen Cibinong publish
\ninformation about its $250 million deposits in two Indonesian
\nnewspapers.<\/p>\n
Super Mitory and Dharmala have to pay fines of Rp 86 million
\nand Rp 102 million respectively for a delay in their 1999
\nfinancial reports.<\/p>\n
Bappepam also imposed an additional fine of Rp 500 million on
\neach of the two companies for conducting transactions involving
\nconflicts of interests.<\/p>\n
According to Bapepam's statement, Super Mitory's board of
\ndirectors and commissioners must, in addition, pay a penalty of
\nRp 250 million each.<\/p>\n
The agency required that Super Mitory hold an independent
\nshareholders meeting to obtain approval of the questionable
\ntransaction.<\/p>\n
Djajanti's Daya Guna and Bintuni must both pay Rp 117 million
\nfor the late submission of their 1999 financial reports.<\/p>\n
Bappepam said the two companies also failed to disclose their
\nliabilities of $87.3 million to Bank Mandiri in their financial
\nreports, for which they must now pay Rp 128 million in fines
\neach.<\/p>\n
In addition, Daya Guna and Bintuni's boards of directors and
\ncommissioners are required to pay Rp 250 million as a penalty for
\ntheir negligence, the statement said.<\/p>\n
Meanwhile, the Jakarta Stock Exchange (JSX) said on Friday it
\nwould delist Super Mitory, Dharmala, Daya Guna and Bintuni on
\nOct. 9.<\/p>\n
JSX initially planned to delist the companies on Sept. 12, but
\npostponed the plan, pending Bappepam's investigation into the
\nfour companies.<\/p>\n
Bappepam also reported that insurance company PT Asuransi
\nLippo E-net had paid their fines, totaling Rp 5.5 billion, to the
\ngovernment.<\/p>\n
Lippo E-Net announced earlier this year it had changed its
\nname to PT Asuransi Lippo E-Net from PT Asuransi Lippo Life,
\nbecause it was turning itself into an Internet and e-business
\ncompany.<\/p>\n
Bappepam then launched a probe into Lippo on suspicions that
\nthe company had mislead the public by the name change to profit
\nfrom investor craze for Internet stocks.(bkm)<\/p>",
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