Govt to probe Kanindo's fake export documents

Govt to probe Kanindo's fake export documents

JAKARTA (JP): Minister of Industry Tunky Ariwibowo promised
yesterday to investigate a potential rescuer of the debt-ridden
Kanindo Group which has been linked to the issue of fake export
documents.

"We are investigating the allegations," he said, in response
to questions about 'the fake export document scandal.'

Speaking to journalists following his meeting with Minister of
Finance Mar'ie Muhammad, Tunky said that the government is
looking into what measures need to be taken to rescue the ailing
Kanindo Group.

During the meeting, Tunky said that he and the Minister of
Finance spoke at length about different ways to settle the
Kanindo Group's bad debts to state banks Bank Bumi Daya (BBD) and
Bank Pembangunan Indonesia (Bapindo).

"Unfortunately, we cannot not discuss them with the press," he
said.

A textile businessman, one of possible rescuers of the Kanindo
Group, was alleged to have issued fake export documents to
support his loan application at Bapindo. He was accused of
raising loans to finance the rescue plan through illegal
procedures.

The businessman, together with former Salim group executive,
Yohannes Kotjo, signed an agreement recently to rescue the ailing
Kanindo Group. The Kanindo group is a consortium of textile
companies owned by Robby Tjahyadi, who is reported to have debts
amounting to approximately Rp 500 billion at Bapindo and BBD.

The group of the businessmen agreed to inject fresh funds of
around Rp 850 million (US$390,600) per day within six months
beginning Aug. 1 to prevent the Kanindo Group from collapsing.

Achmad Dakyan Su'ud, an executive of Bapindo, neither
confirmed nor denied the allegation, saying that the charge
should be addressed to the directorate general of customs and
excise duties.

Suhardjo, the director general of customs and excise duties,
said that he needs at least a week to ascertain whether his
officials were involved in the alleged impropriety.

"If our men were involved, they will be punished according to
existing rules," he said when asked to confirm the allegation.

According to a consultant who insisted on anonymity, the
garment businessman used false export documents to support his
credit applications to Bapindo.

One of the export documents produced by the consultant to back
up his claim stipulates the export of 20,600 jackets, their FOB
value, the names of the exporting firm and the importing company
based in Singapore as well as the name of the ship which carried
the goods.

Signatures

The document dated April 19, 1994 bears three signatures, two
of Bapindo executives and the third of an executive at the
garment exporting company. It also bears the stamped name of a
customs official, Nasrul Abdullah, but without his signature.

The consultant claimed that the name of the ship stipulated in
the document is also fake since records showed that no freighter
using such a name loaded export goods at Tanjung Priok port on
the stated date.

The consultant also alleged that the Singapore-based buyer was
actually a subsidiary of an Indonesian garment exporter who runs
several other textile businesses in the country.

The consultant alleged that the Indonesian garment exporter,
who lives in Singapore, obtained at least US$7.64 million in
loans from Bapindo related to 12 fake export documents on April
19 alone.

Dakyan, the deputy head of the bureau of directors of the
scandal-ridden Bapindo, questioned the credibility of the
consultant, but confirmed that two of the signatories to the
document were Bapindo officials.

He acknowledged that his bank relies on information provided
by the customs and excise office about the delivery of exports.

"It is almost impossible for us to carry out field
investigations to verify the authenticity of export documents,"
he said, adding that the validity of export documents should
normally be ascertained by the directorate general of customs and
excise.

Suhardjo promised to investigate his man's possible
involvement in the alleged manipulation.

"Give me a week," he told reporters at his office.

Three former presidents of Bapindo are now on trial for their
alleged involvement in the widely published credit scandal
centering around Eddy Tansil, the boss of the chemical-based
Golden Key business group.

Tansil was recently sentenced to 17 years in jail for his role
in the scam, which cost the state bank an estimated $448 million.

The former manager of Bapindo's Jakarta branch was sentenced
to nine years in jail for his involvement. (hen)