Probe into Manulife judge-lawyer link begins<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Ministry of Justice extended its probe into the bankruptcy
\nverdict issued against PT Asuransi Jiwa Manulife Indonesia
\n(AJMI), questioning links between a daughter of one of the judges
\nand Manulife's legal challenger.<\/p>\n
Chief Justice Bagir Manan also said the Supreme Court would
\ndecide on Manulife's appeal against the bankruptcy verdict before
\nJuly 15.<\/p>\n
Minister of Justice and Human Rights Yusril Ihza Mahendra said
\non Thursday that his ministry would questioned one of the judge's
\ndaughters and Lucas, a lawyer with connections to the now defunct
\nPT Dharmala Sakti Sejahtera (DSS).<\/p>\n
Dharmala, once Manulife's partner in AJMI, filed the
\nbankruptcy petition against the insurance firm over an unpaid
\ndividend.<\/p>\n
\"This lawyer Lucas is the connection as he is the lawyer of
\nDSS (Dharmala) and the daughter of the judge is working in Lucas'
\noffice,\" Yusril told reporters after a Cabinet meeting. \"There
\nare signs of collusion and we must investigate them,\" he said.<\/p>\n
Last month, the Jakarta Commercial Court declared the Canada-
\nbased AJMI bankrupt in a verdict that critics said reeked of
\ncollusion.<\/p>\n
Two of the three judges ruled that AJMI's unpaid dividend was
\nactually an outstanding debt, which was enough to declare the
\ncompany bankrupt.<\/p>\n
Companies, however, often withhold dividends with the approval
\nof the shareholders' general meeting. Manulife said it did just
\nthat.<\/p>\n
In response to the controversial verdict the Justice Ministry
\nlaunched a probe, focusing at first on the three judges.<\/p>\n
Initially to be concluded within 10 days, Yusril said his men
\nneeded more time. He said the investigation team had problems
\ncalling witnesses, and were now faced with new information.<\/p>\n
Judge CH. Kristi Purnamiwulan said in an affidavit she signed
\nlast April that her daughter, 26-year old Dyah Widowati
\nCandradari, was a staff member in Lucas' law office.<\/p>\n
In that document, apparently a letter of sponsorship, a copy
\nof which The Jakarta Post obtained last week, Kristi said she was
\ncapable of financing her daughter's stay in Australia while she
\nstudied for her master's degree.<\/p>\n
Neither Kristi, Dyah nor Lucas could be reached for comment.<\/p>\n
Yusril said his ministry would examine the judges' bank
\naccounts, including that of the daughter. \"We've received their
\npowers of attorney, but we must coordinate first with Bank
\nIndonesia.\"<\/p>\n
His team has also sought the help of the Public Servant's
\nWealth Audit Commission (KPKPN). Yusril said he expected to see
\nresults over the next two to three days.<\/p>\n
Chief Justice Bagir, meanwhile, said a team of judges
\nspecializing in high profile cases had been appointed to examine
\nManulife's appeal.<\/p>\n
Under the bankruptcy law, the Supreme Court must issue its
\nverdict within 30 days after an appeal has been lodged.<\/p>\n
The bankrupting of AJMI drew fire from the Canadian
\ngovernment, and presented foreign investors with yet another
\nexample of Indonesia's farcical judicial system.<\/p>\n
Following the bankruptcy of Dharmala Sakti in 2000, the
\nDharmala group tried four times to send AJMI to the wall on an
\nassortment of spurious grounds.<\/p>\n
Their legal dispute began with Dharmala's bankruptcy, which
\nallowed Manulife to gain control of its former partner's 40
\npercent share in AJMI following an auction.<\/p>\n
The Dharmala Group and Manulife have been at loggerheads ever
\nsince. Manulife initiated investigations in Hong Kong and
\nSingapore to prove Dharmala's charges against it were baseless.<\/p>\n
AJMI is 71 percent owned by Manulife with the remaining shares
\nowned by the International Finance Corporation and local firm PT
\nTirta Dana Nugraha.<\/p>\n
It is Indonesia's fourth largest life insurance firm with
\ntotal assets worth Rp 3.1 trillion (about US$356 million)<\/p>",
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"sponsor": "Okusi Associates",
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