'Controversial firm' advises IBRA on BCA
Berni K. Moestafa, The Jakarta Post, Jakarta
Consultancy firm Deloitte & Touche, which advised the Indonesian Bank Restructuring Agency (IBRA) on the controversial sale of a former Salim Group company, PT Indomobil Sukses Internasional, has resurfaced as IBRA's consultant for the high- profile sale of Salim's PT Bank Central Asia (BCA).
IBRA spokesman Suryo Susilo confirmed reports that next to PT Merrill Lynch Indonesia and PT Danareksa Sekuritas, IBRA had also appointed Deloitte as its adviser in the sale of BCA.
"It (Deloitte) was appointed as our consultant to review proposals submitted by our two disposal advisers," he told The Jakarta Post on Thursday.
Deloitte's emergence as IBRA's consultant for BCA comes on the heels of its much-criticized role in the sale of Indomobil.
Last month, IBRA sold a 73.63 percent stake in Salim's Indomobil to PT Trimegah Securities for Rp 625 billion (about US$60 million).
The sale drew criticism from analysts who charged that the sale price was far too low. They also suspected Trimegah had acted as a front for Salim to regain control over Indomobil.
IBRA took over Indomobil in 1998 under a settlement scheme for Salim's debts to the agency.
IBRA has banned Salim from reentering Indomobil until the group has settled its debts, worth some Rp 52 trillion.
In 1998, battered by the economic crisis, the ailing Indomobil was valued at around Rp 2,500 a share.
Now, still in bad financial shape but with sales up fivefold, Trimegah bought the company for Rp 625 a share.
Deloitte had advised IBRA to sell Indomobil at that price.
Indomobil's controversial sale has drawn the attention of legislators, who might call for Deloitte's and IBRA's explanation.
"The bidding process was too short and hastily done," Benny Pasaribu, chairman of the House of Representatives' Commission IX for financial affairs, was quoted as saying by Bloomberg. "The transparency of the transaction is under question," he said.
At present, IBRA plans to sell a 51 percent stake in Salim's BCA to strategic investors under a bidding process it hopes to finalize at the end of this month.
BCA's sale has been delayed three times, mainly due to what many believe has been politicking within IBRA and interference from legislators.
Two years of attempts to sell the bank have at last produced a final list of eight bidders, but few with sound banking experience.
British-based Standard Chartered Bank and U.S. investment firm Newbridge Capital are among those deemed as strategic.
The two appear on the list alongside bidders such as the Indonesian Batik Cooperatives Association (GKBI), the Indonesian Recovery Fund Limited, Berca Consortium, and again Trimegah, which is leading a consortium of Bank Panin shareholders.
With such names dotting the list, suspicion of Salim trying to regain control of his bank has grown stronger.
An IBRA source told The Post that Deloitte took part in drawing up the criteria IBRA used for selecting the final bidders for BCA.
This was confirmed by an official at IBRA's Consultancy Management Unit. "Our advisers submitted the criteria, which we discussed with Deloitte," said the official, who refused to allow his name to be quoted.
Unlike Merrill Lynch and Danareksa, Deloitte advised IBRA on every aspect of BCA's sale, including when it consulted legislators and Bank Indonesia.
"It (Deloitte) is normally not present when we meet other institutions, but we always seek its input afterwards," he explained.
Nonetheless, bidders must also pass Bank Indonesia's fit and proper test which, among other things, aims to filter out Salim involvement.
Deloitte executives could not be reached for comment. A company official said they were on leave until next week.