Two firms fined for role in Bank Mashill's share deals<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nannounced yesterday that Bank Mashill Utama had been fined Rp 7
\nmillion (US$3,000) and PT Sumatra Central Prima Rp 500 million in
\nconnection with improper transactions of the bank's shares made
\nlast month.<\/p>\n
Rumors concerning a hostile takeover plan on Bank Mashill,
\nwhich emerged following a series of big transactions on the
\nbank's shares through the Jakarta Stock Exchange (JSX) in early
\nApril, had caused a controversy and heated debates among market
\nplayers, economists, market regulators and even the House of
\nRepresentatives.<\/p>\n
The agency said in a six-page statement which detailed the
\nfindings of its investigations into the transactions of Bank
\nMashill's shares that it was true that several big deals had been
\nmade on Bank Mashill's shares through the JSX, causing a
\nsignificant change in shareholders composition, but the Kerta
\nWidjaja family still owns 51 percent of the bank.<\/p>\n
The statement said that a Bank Mashill director, Leo Yasin,
\nand one of the bank's major shareholders, PT Sumatra Central
\nPrima, sold 130,000 shares and 26 million shares respectively
\nthrough the JSX on April 8 and 9.<\/p>\n
On April 9, two foreign companies -- Castlemere Enterprises
\nLtd. and Duncanmill Holdings Inc. -- bought 33.6 million Bank
\nMashill shares.<\/p>\n
\"As of April 15, Duncanmill already owned 19 million shares or
\n17.78 percent of Bank Mashill, while Castlemere owned 16.55
\npercent or 18 million shares,\" the statement said.<\/p>\n
A director of PT Citra Marga, Tito Sulistio, disclosed that
\nDuncanmill is a finance company based in the British Virgin
\nIslands, jointly owned by President Soeharto's second daughter
\nTitik Prabowo, Tito Sulistio, PT Steady Safe's president Jopie
\nWidjaja and PT Bhakti Investama's president Harry Tanusudibyo.<\/p>\n
Tito added that Castlemere is a Singapore-based trading
\ncompany owned by businessman Amir Gunawan.<\/p>\n
The two parties, according to the Bapepam statement, reported
\nto Bapepam on April 17, April 18 and May 1 that they had executed
\nthe transactions but did not reveal their intention to sell or
\nbuy more shares.<\/p>\n
Tito, on behalf of Duncanmill and Amir of Castlemere, however,
\ntold newsmen on April 10 that they intended to propose a change
\nin the bank's management and that Castlemere would make a tender
\noffer to buy Duncanmill's stake.<\/p>\n
The take-over rumors caused Bank Mashill's share price to rise
\n94 percent from Rp 1,375 on April 1, to Rp 2,700 on April 9. On
\nApril 9 alone, the price sharply increased from Rp 1,950 to Rp
\n2,700.<\/p>\n
The agency, however, said that it didn't find any evidence
\nthat Tito's statement had provided misleading information to the
\ninvesting public.<\/p>\n
\"We have conducted a special investigation on Tito, because
\nwhen the transaction was made, he had become a commissioner of
\nthe Surabaya Stock Exchange and a commissioner of the Indonesian
\nClearing Depository (PT KDEI),\" the agency said.<\/p>\n
\"We therefore warned him to be more careful in the future.\"<\/p>\n
Tito, when contacted by The Jakarta Post yesterday, refused to
\ngive any comments.<\/p>\n
The agency also found out that none of Mashill's executives
\nhad given an official statement to the public about some big
\ntransactions on Mashill's shares between April 1 and April 9,
\nalthough one of the bank's directors who is also a commissioner
\nof PT Sumatra Central Prima -- Jensen Koharjo -- had been
\ninformed about the transactions.<\/p>\n
Based on those findings, Bapepam decided to fine Bank Mashill
\nRp 7 million for waiting seven days before reporting the
\ntransactions made by Jensen or Sumatra Central Prima to the
\nagency.<\/p>\n
The agency also fined Sumatra Central Prima Rp 500 million for
\nengaging in insider trading, which was executed by PT Surya Dumai
\nSekurindo.<\/p>\n
Noted economist Sjahrir hailed Bapepam's action, yet he
\nwondered why Tito received a light punishment.<\/p>\n
Sjahrir told The Jakarta Post last night that Bapepam's
\nstatement was ambiguous.<\/p>\n
\"It's cute. The statement said that Tito's action was
\nconsidered controversial, but the penalty was only in the form of
\na warning. I think he must be ordered to step down from his
\ncurrent position as SSX's commissioner.\" Sjahrir noted.<\/p>\n
He said that Bapepam should further investigate to ascertain
\nas to whether Castlemere and Duncanmill are operating legally.<\/p>\n
\"Bapepam should also examine the source of the funds used by
\nthose parties to pay for the transactions, because it was a big
\ndeal. How could they have made a transaction up to Rp 61 billion
\nin only one day?\" Sjahrir questioned. (alo)<\/p>",
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