KPPU warns of possible manipulation in BCA tender process<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Business Competition Supervisory Commission (KPPU) expressed
\nconcern of possible manipulation in the sale process of the
\ngovernment's 51 percent stake in Bank Central Asia (BCA) due its
\nlack of transparency.<\/p>\n
KPPU said in a statement on Tuesday that the Indonesian Bank
\nRestructuring Agency (IBRA) had no clear criteria in selecting
\nthe bidders for the BCA stake, and there was also no clear time
\ntable for when a necessary fit and proper test against the
\nbidders could be conducted by Bank Indonesia.<\/p>\n
\"IBRA does not have a clear and transparent mechanism to
\nensure that the funding source of the strategic investors does
\nnot come from money laundering, ... or the Salim Group,\" KPPU
\nsaid referring to the former owner of BCA which has been banned
\nby the government from repurchasing the publicly listed bank.<\/p>\n
The commission made the statement following an earlier hearing
\nwith IBRA and other related parties.<\/p>\n
The BCA tender process has attracted much public scrutiny amid
\nreports that the Salim family was trying to reenter the bank via
\nnominee.<\/p>\n
President Megawati Soekarnoputri has asked KPPU to keep a
\nclose eye on the sale process and report the findings to her.<\/p>\n
The government-sanctioned commission was established in 1999
\nto help ensure fair business practices. Under Law No. 5\/1999, the
\ncommission is authorized to cancel any transactions, if there is
\nan indication of collusion.<\/p>\n
The government via IBRA nationalized BCA, the country's
\nlargest retail bank, in the wake of the 1997 financial crisis to
\nprevent the bank from collapsing. Salim had used most of the
\nbank's money to finance affiliated businesses, thus violating
\ncentral bank' regulations.<\/p>\n
There are currently nine bidders eying the BCA stake. Among of
\nthe top bidders are Standard Chartered Bank, Farallon Capital,
\nand Newbridge.<\/p>\n
At the current stage, the bidding process has reached the due
\ndiligence investigation, with all bidders expected to submit
\ntheir final bids before the Jan. 28 deadline.<\/p>\n
There has been speculation that certain bidders are linked to
\nSalim.<\/p>",
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