QSAR did not follow proper procedures: Bapepam<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Capital Market Supervisory Agency (Bapepam) said that
\nagribusiness company PT Qurnia Alam Raya (QSAR) had not followed
\nproper procedures in raising funds from public investors.<\/p>\n
But Bapepam Chairman Herwidayatmo said on Tuesday that the
\nagency could not take any action against the management of the
\nfirm because the current capital market law did not provide the
\nagency with clear-cut authority to deal with such a case.<\/p>\n
\"So, until the revised law (on capital market) is approved by
\nthe House of Representatives, we cannot do anything about this,\"
\nhe told reporters, referring to the law currently under
\ndeliberation in the House.<\/p>\n
Unlike the current law, Herwidayatmo went on, the revised law
\nclearly outlines the powers of the agency and where it would
\nstand in handling such a case.<\/p>\n
QSAR runs an agribusiness operation in West Java. The company
\nmanaged to raise around Rp 500 billion (around US$55 million)
\nfrom over 6,000 individual investors, promising them huge
\nreturns. But reports have said that the company is now bankrupt
\nand the whereabouts of its president Ramli Araby is unknown,
\ncausing the public investors to suffer huge losses.<\/p>\n
Concerning the QSAR scandal, he said that the company had
\nviolated existing regulations when it raised the money by
\nannouncing its offer in the newspapers.<\/p>\n
\"This kind of fund-raising procedure is not in line with the
\ncapital market law, which requires the company to provide a
\nprospectus to investors explaining everything including business
\nrisks,\" he said.<\/p>\n
According to the capital market law, a company raising funds
\nfrom over 300 individual investors must first registered itself
\nwith Bapepam, a procedure QSAR ignored. The violation of this
\nprocedure is a serious crime.<\/p>\n
But Bapepam seems to be evading responsibility in monitoring
\nfund raising by companies like QSAR, as Herwidayatmo said that
\n\"there's nothing we can do (about the scandal).\"<\/p>\n
Such a statement has dealt a further blow to public investors.<\/p>\n
What's more apparent however, is that the comments showed
\nsigns of the agency skipping responsibility despite the fact that
\nthe company raised funds from the public, which puts it under
\nBapepam's supervision.<\/p>\n
The QSAR saga started several months ago when the company
\ncollapsed, leaving investors and their huge investment in limbo.<\/p>\n
Investors -- comprising military officers, businesspeople,
\nhousewives, legislators and others -- fell for the company's
\nlucrative offer and hoped to gain hefty profits in a short period
\nof time.<\/p>\n
The company itself is located in the West Java town of
\nSukabumi and claims to own some 1,680 hectares of land, which it
\nused to cultivate agricultural products.<\/p>\n
Starting in March, the company failed to fulfill its
\nobligation as promised, sparking anger among investors, who are
\nnow threatening to confiscate the company's assets.<\/p>\n
To make it worse, top officials of the company have
\ndisappeared.<\/p>\n
Not only did it create jitters among the people, but it also
\ndrew calls for the authorities to tighter supervision to prevent
\nsimilar cases of fraud from taking place.<\/p>\n
Meanwhile, in a new development, West Java Police have imposed
\nan overseas travel ban on company president Ramli Araby.<\/p>\n
The province's chief of police Sudirman Ail said on Tuesday,
\nas reported by Antara that the police would track down Ramli to
\nhold him responsible.<\/p>\n
The police headquarters spokesman Edward Aritonang also said
\nthat three bank accounts belonging to Ramli have been frozen.
\n\"The top officials of QSAR have committed criminal acts.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/qsar-did-not-follow-proper-procedures-bapepam-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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