State banks criticized for failure to salvage Kanindo<\/p>\n
JAKARTA (JP): Economists yesterday criticized state banks for
\nhaving failed to salvage the debt-ridden textile manufacturer PT
\nKanindo Success Textile prior to the emergence of its financial
\ndifficulties.<\/p>\n
\"The failure indicates that the creditor banks have no good
\nloan supervision mechanisms,\" economist Anwar Nasution told a
\none-day seminar on the new tax bill yesterday.<\/p>\n
\"I would say that the state banks should be more responsible
\nfor the non-performance debt of Kanindo, considering that the
\nbanks should have made examinations prior to the financial
\ncrisis,\" he said.<\/p>\n
\"I cannot imagine why the banks did not take strict measures
\nagainst Kanindo's management when they found that the company was
\nfacing a financial fiasco,\" he said.<\/p>\n
The state banks Bapindo and Bank Bumi Daya are reportedly
\namong the creditors of Kanindo's business.<\/p>\n
\"With Kanindo's bad debt, the public may think about the
\npossibility of collusion between the executives of the banks and
\nKanindo,\" Anwar said.<\/p>\n
Sjahrir, who chaired yesterday's seminar, said that the banks
\nshould be held responsible because they were aware of Kanindo's
\nfinancial problems.<\/p>\n
The company was reportedly acquired by the Texmaco Group and
\nthe Association of Indonesian Batik Cooperatives (GKBI), but an
\nindustrial source said this week that Johannes Kotjo, a former
\nexecutive of the Salim Group, is likely to take over the company.<\/p>\n
The chairman of the economic and trade consulting company
\nEconit, Rizal Ramli, said yesterday that any companies trying to
\nsalvage Kanindo should not use funds from state banks.<\/p>\n
He said that using new loans from state banks to salvage
\nKanindo's operations may create another problem.<\/p>\n
Minister of Finance said this week that state companies were
\nnot allowed to get involved in helping revive Kanindo.<\/p>\n
Ramli expressed concern that Robby Tjahjadi, chairman of the
\nKanindo Group, has disappeared. \"I have been informed that a Bank
\nBumi Daya director went to meet with Robby in Singapore.\" (fhp)<\/p>",
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