Court rejects Bankers Trust's request for judge replacement

Court rejects Bankers Trust's request for judge replacement

JAKARTA (JP): The head of the South Jakarta District Court has
rejected a demand by the United Kingdom-based Bankers Trust
International PLC that the judge presiding over its civil lawsuit
case against PT Jakarta International Hotel & Development (JIHD)
be replaced to ensure a fair trial.

"There is no legal reason to fulfill the defendant's request,"
head of the court, Soenarto, said in a decision dated July 8,
disclosed on Thursday by Bankers Trust lawyers.

The defendant's lawyer, Ibrahim Senen of Dermawan and Co. law
firm, said he was surprised by the court's one-page document
decision. He said it did not address any of the defendant's
arguments regarding replacement of the presiding judge.

"We are really upset and consider the decision quite
unexpected," he said.

Ibrahim said the right to challenge a judge presiding over an
ongoing case was clearly stipulated in Law No. 14/1970 regarding
the power of the judiciary.

"The law was enacted to serve as an effective mechanism to
control judges who act outside the law," he said, alleging that
presiding judge J.M. Simatupang appeared to be biased in favor of
the plaintiff.

The plaintiff's lawyer, Hotman Paris Hutapea, said the court's
decision to reject the request was in accordance with the law.

Bankers Trust filed the request late last month on the grounds
that presiding judge Simatupang violated civil procedural law and
administered unfair treatment during the court hearings.

The defendant filed the same request in relation to its civil
litigation suit against PT Mayora Indah.

Judge Simatupang is presiding over both cases.

Mayora and JIHD, both listed on the Jakarta Stock Exchange,
filed lawsuits at the South Jakarta District Court against
Bankers Trust last year. Lawyers acting on behalf of the
plaintiffs claimed the bank had concluded high risk banking
transactions (derivative contracts) for the firms without prior
financial advice.

The plaintiffs claimed the transactions had led to great
financial losses.

The derivative contract between Mayora and Bankers Trust,
which was signed in 1997 and falls due in 2004, requires Mayora
to exchange US$50 million in rupiah at an agreed rate with
Bankers Trust.

The contract with JIHD, signed in 1995, bears different
maturity dates, ranging from 2002 to 2005, with a net delivery
value of $88 million.(udi)