House alleges wrongdoing in Texmaco asset sales<\/p>\n
Ridwan Max Sijabat, The Jakarta Post, Jakarta<\/p>\n
A House of Representatives' commission called on the police to
\ninvestigate possible conspiracy in the recent controversial asset
\nsale of PT Perkasa Indosteel, a unit of the troubled Texmaco
\nGroup.<\/p>\n
Ade Komaruddin, chairman of House Commission VI dealing with
\nindustry and state enterprises, said his commission was concerned
\nby the decision of a district court in the West Java town of
\nSubang to order Indosteel's assets auctioned off. He said the
\nassets were treated like \"discarded goods\", causing huge losses
\nto the state.<\/p>\n
\"It is very strange that Indosteel's machines, worth US$300
\nmillion, were sold for $3 million at 'a public auction' because
\nthey were auctioned off as scrap metal at a price of Rp 1,250 (13
\nUS cents) per kilogram,\" he said here on Tuesday.<\/p>\n
He said the auction was held on Feb. 15 by the local office of
\nthe state assets and auctions division in Subang, at the order of
\nthe district court.<\/p>\n
Accompanied by two commission members, Lily Asdjudiredja and
\nDjoko Purwongemboro, Ade said the auction lacked transparency,
\nwith only one company, steel mill PT Interworld Steel,
\nparticipating.<\/p>\n
\"The auction was announced in a small newspaper in Bandung,
\nWest Java, only two days before the auction,\" he said.<\/p>\n
The Subang District Court, in a Dec. 13, 2004, decision,
\nordered the sale of the assets of Indosteel, which produces
\nmilitary equipment, trucks and other machines, among other items.<\/p>\n
The sale was ordered after Indosteel workers had not been paid
\nfor months because of massive cash flow problems.<\/p>\n
The government has suspended the execution of the public
\nauction at the request of the House.<\/p>\n
Lily said Texmaco had appealed the suspension to a higher
\ncourt.<\/p>\n
Ade said his commission had established a working committee to
\nrescue Indosteel, which plays a strategic role in producing
\nmilitary equipment, trucks, buses and farming equipment.<\/p>\n
\"The House is committed to salvaging Texmaco's engineering
\ndivision because, besides employing more than 11,000 workers, it
\nhas absorbed a huge amount of money from the government,\" he
\nsaid.<\/p>\n
He said Indosteel could be treated as a state enterprise
\nbecause the government owned 70 percent of its shares.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-alleges-wrongdoing-in-texmaco-asset-sales-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}