Don't lose focus on Bank Lippo: Analysts<\/p>\n
Arya Abhiseka, The Jakarta Post, Jakarta<\/p>\n
Analysts warned on Friday that Bank Lippo's decision to report
\nfinancial analyst Lin Che Wei to the police for allegedly
\ndefaming the bank in his published media article could be a move
\nto divert public attention from alleged wrongdoings by the bank's
\nmanagement.<\/p>\n
Meanwhile, Che Wei stood by his article, saying that the
\nmanagement was suspected of having manipulated transactions in
\nthe bank's shares to deliberately lower share prices.<\/p>\n
He added that he was ready to meet the bank in court.<\/p>\n
"My substantial data will show that my article (in the media)
\nis correct. Therefore I am ready to meet them in court to prove
\nthat this is indeed a serious white-collar crime," he told a
\nmedia conference, which was also attended by a number of
\nfinancial analysts and anticorruption crusaders in support of Che
\nWei.<\/p>\n
Teten Masduki, coordinator for the Indonesian Corruption Watch
\n(ICW), who attended the news briefing, suggested that police
\nshould immediately investigate the possible financial fraud
\ncommitted by Bank Lippo's management.<\/p>\n
"We should not lose focus of the real issue of corruption
\nhere," he said.<\/p>\n
Earlier on Thursday, Bank Lippo commissioner Rudy T. Bachrie
\nfiled a police report against Che Wei for defamation.<\/p>\n
"He is too radical, that's why I reported him to the police,"
\nhe told reporters.<\/p>\n
The Bank Lippo management and its former owner, the Riady
\nfamily, have been under fire, particularly after the bank
\npublished two different third quarter 2002 financial reports late
\nlast year and the continuing decline in the share price of the
\npublicly listed bank.<\/p>\n
In a November media report, the bank reported a profit, but in
\na subsequent December report to the Jakarta Stock Exchange, it
\nreported a loss. The bank also said that its capital condition
\nhad deteriorated.<\/p>\n
The management said that the weaker financial condition was
\nlinked to the rapid decline in the value of foreclosed assets.<\/p>\n
However, it remains unclear why the value of the assets had
\ndropped.<\/p>\n
The management -- which has been accused of acting on behalf
\nof the bank's former controlling owner -- proposed that the bank
\nlaunch a rights issue to raise cash to help improve its financial
\ncondition.<\/p>\n
But analysts said that this was merely an attempt to allow the
\nRiady family to regain control of the bank at a huge discount as
\nthe current share price of the bank had greatly declined.<\/p>\n
Bank Lippo was recapitalized by the government in 1999 using
\nRp 7.2 trillion (US$809 billion) of state funds. In turn, the
\ngovernment obtained a 59 percent stake in the bank.<\/p>\n
Since the cash-strapped government is unlikely to buy into a
\nrights issue, analysts said, it would open the door for the Riady
\nfamily to regain the bank.<\/p>\n
Since November last year, the share price of Bank Lippo has
\nbeen declining. As a comparison, the bank is now only worth
\naround Rp 600 billion.<\/p>\n
The Capital Market Supervisory Agency (Bapepam) is currently
\ninvestigating Bank Lippo. The result of the investigation is
\nexpected to be announced next month.<\/p>\n
The Jakarta Stock Exchange earlier reprimanded Bank Lippo for
\nclaiming an unaudited third quarter financial report as audited.<\/p>",
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