Lippo e-Net investigated over 'misleading information'
Lippo e-Net investigated over 'misleading information'
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
is investigating whether listed firm PT Lippo e-Net presented
misleading information to the public, an agency official said.
"We are studying all the statements and public announcements
made by Lippo e-Net. We will soon ask the company to provide the
supporting facts of such statements and announcements," head of
the agency's company financial assessment bureau Freddy Saragih
said on Tuesday.
Lippo e-Net share prices doubled within a week in mid-January
after the company made a public announcement that it had
transformed itself from an insurance firm into an Internet
company and planned an immediate allocation of Rp 1 trillion for
the business.
The stated fund allocation has not been realized.
Anticipating possible market manipulation by the firm, the
management of the Jakarta Stock Exchange (JSX) quickly conducted
a special investigation into the company.
In early April JSX officially sent an investigative report on
the insurance company to Bapepam. JSX said it found some
inconsistencies in the statements made by Lippo e-Net.
A particular issue is the company's stated Rp 1 trillion
investment plan.
Equity analysts said the inconsistency in statements gave a
strong indication of the provision of misleading information.
Dandossi Matram from Bakrie Securities said earlier the act of
releasing inconsistent statements also meant "giving misleading
information".
"It is obvious that the two phrases have the same meaning,
with only the former one being a softer way of saying it."
Law No. 8/1995 on capital markets prohibits any party from
intentionally giving false or misleading information to the
public for any targeted purpose, including to artificially
influence share prices on the stock market.
Violators would be liable to maximum sentences of 10 years in
jail and a Rp 15 billion fine.
Freddy said Lippo e-Net would have to provide evidence to
Bapepam that the company was serious in entering the Internet
business.
He said Bapepam received evidence in the form of Lippo e-Net's
minutes of meeting which showed that some years ago the company
was interested in the Internet business.
However, Freddy declined to answer reporters' queries whether
Bapepam received evidence supporting Lippo e-Net's Rp 1 trillion
Internet investment plan.
"Please wait for our final investigative report," he said,
leaving quickly.
PT Lippo e-Net underwent a name change from PT Lippo Life in
late January. (udi)