Lippo e-Net investigated over 'misleading information'<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nis investigating whether listed firm PT Lippo e-Net presented
\nmisleading information to the public, an agency official said.<\/p>\n
"We are studying all the statements and public announcements
\nmade by Lippo e-Net. We will soon ask the company to provide the
\nsupporting facts of such statements and announcements," head of
\nthe agency's company financial assessment bureau Freddy Saragih
\nsaid on Tuesday.<\/p>\n
Lippo e-Net share prices doubled within a week in mid-January
\nafter the company made a public announcement that it had
\ntransformed itself from an insurance firm into an Internet
\ncompany and planned an immediate allocation of Rp 1 trillion for
\nthe business.<\/p>\n
The stated fund allocation has not been realized.<\/p>\n
Anticipating possible market manipulation by the firm, the
\nmanagement of the Jakarta Stock Exchange (JSX) quickly conducted
\na special investigation into the company.<\/p>\n
In early April JSX officially sent an investigative report on
\nthe insurance company to Bapepam. JSX said it found some
\ninconsistencies in the statements made by Lippo e-Net.<\/p>\n
A particular issue is the company's stated Rp 1 trillion
\ninvestment plan.<\/p>\n
Equity analysts said the inconsistency in statements gave a
\nstrong indication of the provision of misleading information.<\/p>\n
Dandossi Matram from Bakrie Securities said earlier the act of
\nreleasing inconsistent statements also meant "giving misleading
\ninformation".<\/p>\n
"It is obvious that the two phrases have the same meaning,
\nwith only the former one being a softer way of saying it."<\/p>\n
Law No. 8\/1995 on capital markets prohibits any party from
\nintentionally giving false or misleading information to the
\npublic for any targeted purpose, including to artificially
\ninfluence share prices on the stock market.<\/p>\n
Violators would be liable to maximum sentences of 10 years in
\njail and a Rp 15 billion fine.<\/p>\n
Freddy said Lippo e-Net would have to provide evidence to
\nBapepam that the company was serious in entering the Internet
\nbusiness.<\/p>\n
He said Bapepam received evidence in the form of Lippo e-Net's
\nminutes of meeting which showed that some years ago the company
\nwas interested in the Internet business.<\/p>\n
However, Freddy declined to answer reporters' queries whether
\nBapepam received evidence supporting Lippo e-Net's Rp 1 trillion
\nInternet investment plan.<\/p>\n
"Please wait for our final investigative report," he said,
\nleaving quickly.<\/p>\n
PT Lippo e-Net underwent a name change from PT Lippo Life in
\nlate January. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippo-e-net-investigated-over-misleading-information-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}