JSX withdraws threat to PT Semen Cibinong
JSX withdraws threat to PT Semen Cibinong
JAKARTA (JP): The Jakarta Stock Exchange (JSX) withdrew on
Monday its threat to suspend cement producer PT Semen Cibinong
from trading, after the company submitted explanations on the
whereabouts of the missing US$250 million in deposits.
JSX president Mas Achmad Daniri said that with Semen
Cibinong's written explanation, the exchange would not proceed
with its plan to suspend the company.
"However, we're not completely satisfied with Semen Cibinong's
explanations," Daniri told reporters in a press meeting.
JSX said last week that it would suspend Semen Cibinong if the
company made no response within five days to the exchange's
written inquiry on the whereabouts of the funds. The deadline
ended Monday.
He said that Semen Cibinong's explanations still left several
questions unanswered. According to him, the company still needed
to clarify the source of the funds.
Furthermore, Semen Cibinong's claim that the money was kept in
a deposit in two foreign banks also lacked verification.
Semen Cibinong, owned by business tycoon Hashim
Djojohadikusumo, claimed to have deposited the $250 million at
the Far East Bank in Cook Island and at the Bank of Central
Pacific in Vanuatu.
But during a hearing with JSX earlier this month, the company
was unable to disclose information on the existence of the two
banks.
According to JSX, Cibinong offered to reveal documents of the
banks' existence to JSX but not for public disclosure.
In its explanation to JSX, the company said it could not
publicly disclose copies of the bank's deposit certificates as
the company was currently in negotiations with its creditors.
Semen Cibinong has reported total debts of $1.4 billion, 94
percent of which is owed to foreign creditors.
In its letter, the company said that banks in Cook Islands,
Vanuatu, Cayman Islands and Virgin Islands where widely known to
be safe from attempts by creditors to freeze or take over
debtors' funds.
Furthermore, Bank of Central Pacific and the Far East Bank
offered good interest rates, it said.
However, Semen Cibinong admitted to have never had contact
with the two banks before and that the company's board of
directors and staff had never visited the banks.
Semen Cibinong said it was corresponding with the two banks
when renewing its deposits. It further admitted that the two
banks had financial difficulties.
Hashim said earlier that withdrawing the money from the banks
was difficult, as the banks were experiencing problems in
recouping loans channeled to several companies, including PT
Tunas Mas, an affiliate of Cibinong under the Tirtamas Group.
Responding to the source of the missing $250 million, Semen
Cibinong said it procured the funds in unsecured loans from
several banks. But the letter did not specify the names of the
banks.
The money, Semen Cibinong said, was used for working capital
and general purposes.(bkm)