Sat, 11 Sep 1999

Indosat's director sacked

JAKARTA (JP): PT Indosat's finance director, Herman Simanjuntak, has been dismissed due to an alleged irregularity in the payment of the company's dividend to the government.

Sofyan Djalil, a senior assistant of the state minister for the empowerment of state enterprises, said on Thursday that Herman was dismissed after an irregularity was found in the handling of the government's dividend.

According to the audit report made by independent accountant Prasetyo Utomo & Co, Herman deviated about Rp 22.5 billion in interest gains from the government's dividends.

Sofyan said that Indosat kept the government's dividends worth Rp 112 billion due to a "problem" in the transfer of the funds to the state treasury.

The interest gains of the funds were, however, transferred to the former finance director's account.

Sofyan said the dismissal will be effective on Sept. 15 and Herman's duties would be carried out by Indosat's directors for commerce and business development. (cst)