Bapepam finalizes six firms of breaching rules
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam) has imposed sanctions on six firms, four of which belong to major business groups Bakrie, Tirtamas and Djajanti, for breaching regulations.
The six firms are Bakrie's financing firm PT Bakrie Finance Corporation; Tirtamas' cement producer PT Semen Cibinong; Djajanti's fishery concerns PT Daya Guna Samudra and PT Bintuni Minaraya; footwear manufacturer PT Super Mitory Utama; and holding company PT Dharmala Sakti Sejahtera of the Dharmala Group.
The agency said in a statement on Thursday it had imposed administrative sanctions and fines of between Rp 61 million (US$7,300) and Rp 1 billion on the six publicly listed companies.
The agency's statement said Bakrie Finance not only delivered its financial report late, but also violated accounting principles and misused capital raised during its right issue.
"We impose a penalty of Rp 61 million for reporting the company's financial statement 61 days late," the statement said.
Bapepam also imposed an additional fine of Rp 500 million on the company's boards of directors and commissioners for allowing the issuance of misleading financial reports.
In addition, the capital market watchdog also ordered the company to soon hold a public expose (presentation) to disclose the use of the proceeds from the company's recent limited public offering or rights issue.
Bapepam said that Bakrie Finance had diverted the use of Rp 475 billion raised during its right issue to purposes other than those stipulated in the company's prospectus issued before the limited share offering.
The agency also imposed a fine of Rp 1 billion on Semen Cibinong's boards of directors for their failure to prove the company's $250 million deposit as stated in its financial report.
"This carelessness affects the going concern of the company and has caused its auditor to issue a disclaimer on the company's financial report," Bappepam said.
Semen Cibinong has said it placed the money in two accounts in the Far East Bank in the Cook Islands and at the Bank of Central Pacific in Vanuatu.
But the company failed to convince Bapepam of the existence of those deposits, as Semen Cibinong refused to publicly disclosed the information.
"We order the company's board of directors to pay a penalty of Rp 1 billion as a consequence of their negligence in carrying out their duties," the statement said.
Furthermore, the agency required that Semen Cibinong publish information about its $250 million deposits in two Indonesian newspapers.
Super Mitory and Dharmala have to pay fines of Rp 86 million and Rp 102 million respectively for a delay in their 1999 financial reports.
Bappepam also imposed an additional fine of Rp 500 million on each of the two companies for conducting transactions involving conflicts of interests.
According to Bapepam's statement, Super Mitory's board of directors and commissioners must, in addition, pay a penalty of Rp 250 million each.
The agency required that Super Mitory hold an independent shareholders meeting to obtain approval of the questionable transaction.
Djajanti's Daya Guna and Bintuni must both pay Rp 117 million for the late submission of their 1999 financial reports.
Bappepam said the two companies also failed to disclose their liabilities of $87.3 million to Bank Mandiri in their financial reports, for which they must now pay Rp 128 million in fines each.
In addition, Daya Guna and Bintuni's boards of directors and commissioners are required to pay Rp 250 million as a penalty for their negligence, the statement said.
Meanwhile, the Jakarta Stock Exchange (JSX) said on Friday it would delist Super Mitory, Dharmala, Daya Guna and Bintuni on Oct. 9.
JSX initially planned to delist the companies on Sept. 12, but postponed the plan, pending Bappepam's investigation into the four companies.
Bappepam also reported that insurance company PT Asuransi Lippo E-net had paid their fines, totaling Rp 5.5 billion, to the government.
Lippo E-Net announced earlier this year it had changed its name to PT Asuransi Lippo E-Net from PT Asuransi Lippo Life, because it was turning itself into an Internet and e-business company.
Bappepam then launched a probe into Lippo on suspicions that the company had mislead the public by the name change to profit from investor craze for Internet stocks.(bkm)