Govt allows itself to be cheated?

Govt allows itself to be cheated?

From Kontan

Many people believe that the state will sustain losses if it
goes ahead with its plan to sell its shares in Bank Lippo. In
response to this, the chairman of the Indonesian Bank
Restructuring Agency (IBRA) quickly stated that he would never
allow losses to the state to be incurred as man lives only once.
He is quite right because nobody lives twice. And it may also be
correct that he will not inflict losses on the state. The
question is whether the same will apply to the people around him.
Even a kindergarten child can see that you inflict a loss if you
sell a Rp 300 toy at Rp 50 or Rp 100.

Of course, the public at large cannot read confidential legal
documents with high-sounding titles like IMPAs, let alone
understand their contents. What they want to know is why things
have been so easily arranged. Why must the government, which has
spent huge amounts of money, reduce these amounts when it is time
for the money to be repaid. Or, even to the extent of allowing
the borrowers not to return the money at all. This is strange but
true.

It is stranger that a country with a lot of clever people does
not have lawyers or legal counselors as smart and reliable as
those working for the companies that have borrowed huge amounts
of money from the government. As a result, simple agreements have
been rendered confusing.

The agreements should have contained clauses stipulating that
if the government wished to sell the shares under its control,
the former owners would be obligated to purchase the shares at a
price equal to the amount of money the government has spent. If
possible, a clause on compensation should be included.

Actually, an agreement based on the IMPA model is one
ordinarily made under the name of a transaction agreement with a
right of repurchase. The question is why these IMPAs are drawn
up, plus amendments and supplements, in a manner which obviously
does not protect the rights of the government.

TAUFIK KARMADI

Jakarta