SP gets new management, ex-CEO vows to retain post<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
The country's largest cement producer, publicly listed PT Semen
\nGresik, decided on Monday to oust the rebellious top executives
\nof its West Sumatra-based subsidiary PT Semen Padang, who have
\nbeen fighting against the government's plan to sell its
\ncontrolling stake in the parent company to Mexican cement giant
\nCemex.<\/p>\n
The old management team, which seems to have the support of
\nSemen Padang employees and the local court, however, vowed to
\nretain their positions, claiming that the management reshuffle
\nwas unlawful.<\/p>\n
\"We deny the legality of the extraordinary shareholders
\nmeeting, therefore the outcome is also illegal,\" outgoing Semen
\nPadang president Ikhdan Nizar told The Jakarta Post.<\/p>\n
The long-overdue shareholders meeting was arranged by Semen
\nGresik with the management reshuffle as the main agenda.<\/p>\n
Ikhdan said that all moves made by Semen Gresik was
\nillegitimate following a local court's ruling to abrogate all
\nlegal rights held by Semen Gresik in Semen Padang, which
\ncontributes a third of Semen Gresik's total output.<\/p>\n
On May 9, the Padang District Court in West Sumatra handed
\ndown a ruling that annulled the sale of Semen Padang to Semen
\nGresik in 1995.<\/p>\n
However, the Supreme Court recently approved Semen Gresik's
\nproposal to hold an extraordinary shareholders meeting regarding
\nSemen Padang.<\/p>\n
The former management of Semen Padang, together with local
\npoliticians, had long demanded that the central government
\nseparate it from Semen Gresik as they were opposed to a plan to
\nsell further shares in Semen Gresik to Cemex, which already owns
\na 25-percent stake in the company.<\/p>\n
The demand, however, will cost the government dearly as it
\nwould have to compensate Cemex and other minority shareholders of
\nSemen Gresik. Semen Padang's rebellion has thwarted, for the time
\nbeing, the government's key privatization program, planned since
\n2001.<\/p>\n
The old Semen Padang management allegedly held up Semen
\nGresik's 2002 accounts, forcing it to miss a March 31 deadline to
\nsubmit its financial report, which prompted auditors to qualify
\nits accounts.<\/p>\n
As a result, the Jakarta Stock Exchange suspended trading in
\nthe Semen Gresik shares on Monday morning.<\/p>\n
Meanwhile, Semen Gresik president Satriyo said in the
\nextraordinary meeting that he hoped the new management would take
\nover with a commitment to resolve and fix the current problems.<\/p>\n
Satriyo was confident that the employees of Semen Padang would
\nsupport the new management team, some of whom were promoted from
\nwithin the company.<\/p>\n
Dwi Sucipto, a former director at Semen Padang, has been
\nappointed the new president, while Ismet Yuzairi, a former North
\nSumatra army commander, has been named president commissioner.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sp-gets-new-management-ex-ceo-vows-to-retain-post-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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