Golkar issues restrained comments on Kanindo case<\/p>\n
JAKARTA (JP): The ruling Golkar political group yesterday
\nissued restrained comments regarding the scandal at the giant
\nKanindo Success Textile company which is owned by one of its
\nmajor donors, the controversial businessman Robby Tjahjadi.<\/p>\n
While endorsing the planned takeover of the business by
\nGKBI, the Association of Batik Cooperatives, Golkar officials
\nrefrained from disclosing what actions they plan to take against
\nRobby in view of the huge debt scandal.<\/p>\n
Warno Hardjo, who coordinates Golkar's economic departments,
\ntold a press conference that if GKBI eventually took over Kanindo
\nmanagement, it would mark GKBI's first ever involvement in a
\nmammoth business deal.<\/p>\n
\"We will be proud to see GKBI play a major role in business,\"
\nhe said, adding that if successful, it would prove wrong the
\ncriticism of cooperatives' poor performances.\"<\/p>\n
Last week, Kanindo's management was taken over by its two
\ncreditors, Bank Bumi Daya and Bank Pembangunan Indonesia
\n(Bapindo), both owned by the government, pending its acquisition
\nby a third party.<\/p>\n
Kanindo, which runs a huge yarn spinning factory near Semarang
\nin Central Java, is on the verge of collapse after defaulting on
\nits more than Rp 500 billion (US$245 million) loan.<\/p>\n
GKBI has been rumored as a potential investor into the group
\nalong with Texmaco Group, a private textile company. Two powerful
\nbusinessmen, Johannes Kotjo and Kim Johannes, had been injecting
\nfunds into Kanindo since Aug. 1 to keep the company afloat, but
\nstopped doing so when the two state banks took over the
\nmanagement last week.<\/p>\n
Kanindo's financial crisis first came under public scrutiny
\nearlier this year when Golkar legislator Bambang Warihkusumo
\nidentified it as one of the 50 major companies which had bad debt
\nproblems.<\/p>\n
Bambang did not have the support from the Golkar faction in
\nthe House of Representatives (DPR) to push the issue at the time.
\nNews about Kanindo's collapse came only recently with the news of
\nan imminent takeover.<\/p>\n
The situation was quite different in February when rumors
\nabout the Kanindo fiasco first flared up. At that time leaders of
\nGolkar's faction in the House invited Robby to defend his record.<\/p>\n
Robby, who made a big comeback into Indonesia's business scene
\nafter serving time in the 1970s for smuggling luxury cars, left a
\ndeep impression when, with tears in his eyes, he called the
\nallegations about his debts baseless and blown out of proportion
\nby his business rivals in an effort to discredit him.<\/p>\n
Robby has been in Singapore since the scandal resurfaced,
\napparently receiving medical treatment for a heart condition.<\/p>\n
Fahmi Idris, chairman of Golkar's department of cooperatives,
\nyesterday brushed aside pessimism about GKBI's ability to manage
\nKanindo.<\/p>\n
He said GKBI needed to work together with other investors to
\nsolve Kanindo's technical problems like bad debts and cash flows.<\/p>\n
Fahmi, who is a businessman, said GKBI should seek partners
\nwhose economic visions are more in line with Golkar's interests.
\n\"Never mind if they are not Golkar members, but what counts is
\nthat Kanindo must not collapse for the second time,\" he said.<\/p>\n
GKBI control<\/p>\n
According to the Antara news agency, Golkar wants to see GKBI
\ncontrol most of the shares in Kanindo.<\/p>\n
Warno and Fahmi declined to comment when asked if Golkar would
\ntake any action against Robby if the attorney general's office
\ninvestigators found him in violation of the law, such as having
\ncolluded with bank officials for the procurement of bank credits
\nas widely alleged.<\/p>\n
\"It's time to uphold business ethics and put this monkey
\nbusiness to an end,\" Warno said.<\/p>\n
When pressed why Golkar defended Kanindo when the allegations
\nfirst surfaced in February, Warno said that the denial was made
\nat the time when \"the investigation was still underway.\"<\/p>\n
\"At that time Robby was serious about settling his debt ... he
\nis different now,\" Fahmi said. \"The latest development shows that
\nhe has failed to solve the problem.\"<\/p>\n
Fahmi added that Golkar was still committed towards
\nestablishing a clean government and would see to it that any
\nparty breaching the rules be punished.<\/p>\n
Golkar, he said, has asked the government to go ahead with its
\ninvestigation into the Kanindo affair and hide nothing.(pan)<\/p>",
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