JSK extends trading ban on three firms

JSK extends trading ban on three firms

JAKARTA (JP): The Jakarta Stock Exchange (JSX) said on Tuesday
that a suspension on trading of Bank Bali, PT Citra Marga
Nusaphala Persada (CMNP) and PT Semen Cibinong shares would stay
in place until the three companies fully disclosed their
respective controversial transactions.

"JSX requires an official letter from Bank Bali's management
declaring that the bank has fully carried out information
disclosure rules in order for the bank's share trading suspension
to be lifted," it said in a statement made available to The
Jakarta Post.

Trading on the scandal-hit bank was suspended following the
disclosure of a dubious commission payment worth nearly Rp 546
billion made in July to a company with close connections to the
ruling Golkar Party.

The JSX has told tollroad operator CMNP that its trading
suspension will only be lifted once it submits a realization
report detailing its plan to transfer an obligation to repay a
US$70 million debt (owed to Brunei Investment Agency) to PT Citra
Lamtorogung Persada.

Earlier reports said the status of the debt was unclear, as
CMNP had never recorded the debt on its balance sheet.

The controversial debt became an issue when the Brunei company
asked the toll road operator, partly owned by former president
Soeharto's daughter Siti Hardiyanti Rukmana, to repay the debt
which matured in June.

Bankers and government officials said debt restructuring talks
between Semen Cibinong and creditors broke down last month after
the company said up to $250 million had "disappeared" from its
books.

But Semen Cibinong executives denied the funds were missing.

Share trading on Bank Bali has been suspended since Aug. 20,
while trading on CMNP and Semen Cibinong has been suspended since
Aug. 26. (udi)