Probe into corruption in steel mills sought<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Around 200 students and activists staged a demonstration at
\nNational Police Headquarters on Tuesday, demanding the police
\ninvestigate an alleged financial scandal involving three steel
\nmills of the Gunawan Steel Group in the East Java capital of
\nSurabaya, believed to have caused more than Rp 1.2 trillion in
\nstate losses.<\/p>\n
\"The police must look into the financial scandal, which is
\nsimilar to the one that involved businessman Eddy Tanzil, who is
\nstill at large. Beforehand, the police should bar the steel
\ngroup's head Gwie Gunawan alias Gwie Sie An from leaving the
\ncountry so that he is available for questioning immediately,\"
\nsaid M. Arief who led the demonstration.<\/p>\n
The students and activists aired similar demands to the
\nAttorney General's Office and the House of Representatives in a
\nrally here over the weekend.<\/p>\n
Arief, also coordinator of the Committee to Monitor State
\nAssets, said the police had to reopen an investigation into the
\nscandal as the steel group had apparently retaken control of
\nthree steel mills seized in 1998 by the Indonesian Bank
\nRestructuring Agency (IBRA) as collateral against the Rp 1.45
\ntrillion (US$159.70 million) it owed to Bank Mandiri and the now-
\nliquidated Bank Bali.<\/p>\n
He said the Gunawan Steel Group bought the three mills for Rp
\n185 billion via three companies that are believed to be owned by
\nthe Gwie family, with the help of allegedly corrupt members of
\nthe East Java legislature and former IBRA employees.<\/p>\n
He said the three steel mills were seized by IBRA over the
\nsteel group's inability to repay its huge debt to the two banks,
\nbut were later sold under the agency's asset-sales program to two
\ncompanies believed to be owned by the same group.<\/p>\n
PT Gunawan Dian Steel Pipe (GDSP), with Rp 453 billion credit,
\nwas sold for Rp 27 billion to PT Bina Kreasi Prima Niagatama,
\nwhile PT Gunawan Iron Steel (GIS), with Rp 234 billion credit,
\nwas sold for Rp 14 billion to (Bina Kreasi). PT Gunawan Dianjaya
\nSteel (GDS), with Rp 762 billion in defaulted loans, was sold for
\nRp 144.8 billion to PT Parma Iriando Perkasa.<\/p>\n
Arief added that the two firms that bought the three troubled
\ncompanies belonged to the Gunawan Steel Group, \"and this violates
\nregulations on asset sales conducted by the government.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/probe-into-corruption-in-steel-mills-sought-1447893297",
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"sponsor": "Okusi Associates",
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