Bank executive queried over fund release refusal

Bank executive queried over fund release refusal

JAKARTA (JP): An executive of Standard Chartered Bank here was
questioned by police yesterday following a lawsuit filed by one
of the bank's customers.

The customer, businesswoman Yee Mei Mei, a Hong Kong national
operating a patronage for mega projects in Indonesia, claimed
that the bank -- without presenting any legal reasons -- had
refused to release her account, worth around Rp 1 billion.

Accompanied by lawyer Kartini Mulyadi, David Hawkins, chief
executive of the Standard's Indonesian office, arrived at the
economic crime division of police headquarters at around 9:30
a.m. for the first questioning session, which lasted until late
that evening.

A flock of reporters failed to obtain any information about
the questioning either from Hawkins or the police.

"In the meantime, I have nothing to say, but I promise to
release information (about the questioning) -- if any -- as soon
as possible," the bank's spokeswoman, Rina Djamal, told The
Jakarta Post by phone.

Lawyer Kartini, as well as National Police Spokesman Brig.
Gen. Nurfaizi, could not be reached for comment regarding the
questioning session of the lawsuit.

According to Mei Mei's lawyer, Rusdi Nurima, his client had
been prevented from closing her bank account on at least three
occasions in January without legitimate reasons.

"The bank only informed my client that it was Bank Indonesia
(the central bank) which had advised the Standard Chartered Bank
to temporarily block Mei Mei's account," Rusdi told the Post.

Rusdi said the procedure was against the existing banking
regulations.

"It's only the minister of finance who has the authority to
block any bank accounts in this country at the request of police,
prosecutors or judges," the lawyer said.

Although there have been no official statements regarding the
bank's decision to temporarily block the bank account, rumors
have been circulating that the money transferred to Mei Mei's
account was meant to launder profits from illegal overseas
businesses.

Mei Mei, a representative of Dragon Bank in Indonesia, runs PT
Dragon Bank International here.

According to Rusdi, the money was transferred by Dragon Bank's
office headquarters in Vanuatu, an island country in the
southwest of Pacific Ocean.

"My client has been accused of many things, but firm and
sufficient evidence must be brought to court in order to prove
any charges against Mei Mei," Rusdi said. "So far, she has no
criminal record in any part of the world," he added.

Mei Mei sued the bank for US$300 million in compensation. The
lawsuit was filed about three months ago.

"She has lost a number of projects and her reputation has been
tarnished due to this case," Rusdi said.

Meanwhile, a reliable source told the Post that a number of
executives from Standard Chartered's headquarters came to Mei
Mei's office yesterday to discuss possibilities of settling the
issue outside of court.

Rumors have it that the blockade of the bank account was due
to the absence of permits from the Ministry of Finance for PT
Dragon Bank Indonesia, which is designed to finance mega projects
in Indonesia.

"Based on the existing law, a patronage like Dragon Bank
should only have a permit issued by the Investment Coordinating
Board," Rusdi argued.

In addition, it has also been rumored that the blockade has to
do with a mega project for a telecommunications installation in
the United Kingdom that was won by Mei Mei's firm and its partner
from Indonesia, PT Harapan Insani. (bsr)