JSX being audited after reports of breaches<\/p>\n
JAKARTA (JP): The board of commissioners of the Jakarta Stock
\nExchange (JSX) has appointed Earnst & Young Consulting to carry
\nout an investigative audit on the JSX management following
\nreports of alleged breaches in the exchange.<\/p>\n
\"The scope of work covers the 12 findings of inefficiency and
\npossible breaches, the information technology area and JSX role
\nin the exchange's trading surveillance,\" member of the boards of
\ncommissioner Erry Riyana Hardjapamekas said on Wednesday.<\/p>\n
Erry said Earnst & Young, who charged a US$25,000 fee for the
\njob, started the auditing work on Wednesday.<\/p>\n
The Capital Market Supervisory Agency (Bapepam), in its
\noperational audit report leaked to the media last week, said it
\nfound 12 cases of inefficiency and breaches of operating
\nprocedures by the management of JSX.<\/p>\n
The annual shareholders' meeting held on Monday approved the
\ncommission's proposal to hire an independent auditor to follow up
\nthe above 12 findings.<\/p>\n
The meeting also agreed to install a five-member team,
\nrepresenting shareholders' interests, to closely assist the work
\nof the independent auditor throughout its three-week auditing
\nprocess.<\/p>\n
The idea of the five-member team was proposed by Syahrir, a
\nprominent economist representing PT Syahrir Securities, who is
\nalso member of JSX shareholders, .<\/p>\n
Some equity analysts saw the investigative audit as part of a
\nbigger conspiracy by certain parties to get rid of the current
\nJSX management team who have been imposing strict rules on the
\nbourse.<\/p>\n
\"This is hard-core politics. There are many parties who are
\nunpleasant with the strict JSX rules and want to make a move,\"
\nsenior equity analyst Martin P.H. Panggabean said<\/p>\n
\"JSX is the country's most \"reformist\" public institution.
\nThis is why the current management got all these disturbances,\"
\nhe said.<\/p>\n
Martin said the independent auditor should find out if the 12
\nfindings by Bapepam were merely \"honest\" mistakes by JSX
\nmanagement which might have been committed without any bad faith.<\/p>\n
M.S. Sembiring, from Mitra Investdana Sekurindo, played down
\nthe existence of any conspiracy, saying that there were pluses
\nand of course minuses about the performance of the current
\nmanagement of JSX.<\/p>\n
\"The current management of JSX has to be responsible if the
\nminuses are beyond toleration,\" he said.<\/p>\n
He said that there were significant projects carried out by
\nthe management that had not passed proper approval procedures
\nthrough the commissioners or Bapepam.<\/p>\n
Meanwhile, Intan Abdams, the JSX corporate communications
\ndivision head, clarified media reports that said there were over
\n20 listed firms implicated in possible wrongdoing.<\/p>\n
\"It is our trading system that automatically halts the trading
\nof any shares whose price fluctuates more than 30 percent within
\na day,\" she said adding that in such occurrences a regular and
\nstandard investigation takes place.<\/p>\n
\"It is a very normal procedure, nothing special. The system is
\nimplemented to improve market surveillance and to get rid of any
\nunusual trading activity on the market,\" she said. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-being-audited-after-reports-of-breaches-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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