Manulife releases video footage showing 'extortion attempt'
Manulife releases video footage showing 'extortion attempt'
Ahmad Pathoni, Agence France-Presse, Jakarta
Canadian insurance giant Manulife Financial Corp. hit back on Tuesday in its bitter legal feud with former Indonesian partner the Dharmala Group, releasing secretly-filmed video footage of what it called an extortion attempt.
Its local unit PT Asuransi Jiwa Manulife Indonesia (AJMI) meanwhile filed an appeal to the Supreme Court against what it calls a "crazy" ruling by the Commercial Court declaring the firm bankrupt.
In an extraordinary move, AJMI lawyers at a press conference played a videotape of two meetings in Singapore in November 2000 between two Manulife officials and an Indonesian claiming to represent Roman Gold.
The individual is seen asking for Rp 400 billion (now US$46 million) to close the case.
"The video exposes... (a) bold extortion attempt," said Manulife lawyer Hotma Sitompoel.
"The release of the video sheds more light on the web of deceit behind the various legal attacks against AJMI," he said.
Sitompoel also accused the man of perjury for claiming at a court hearing that he had never discussed the legal problem with Manulife officials.
"We will bring the case to the police soon. This guy must be arrested," he told the press conference.
Sitompoel told policyholders not to panic because of the bankruptcy ruling.
"Financially and legally, there is nothing to worry about," he said.
The bankruptcy petition which was granted last Thursday against AJMI was filed by the receiver for PT Dharmala Sakti Sejahtera, which itself was declared bankrupt in June 2000.
The feud dates from October 2000 when the Canadian firm bought Dharmala's 40 percent stake in their joint venture at a government auction.
The purchase was contested by a previously unknown company, Roman Gold Assets Ltd., which claimed to have bought the same shares two weeks earlier.
Manulife says Roman Gold is a front for the Gondokusumo family which had controlled Dharmala.
AJMI spokeswoman Nelly Husnayati said the company, which has 320,000 policyholders in Indonesia but is barred from conducting insurance business under the bankruptcy order, filed its appeal to the Supreme Court earlier Tuesday.
She said the court must rule within 45 days but the firm hoped for a decision much sooner.
Finance Minister Boediono has expressed concern about the case and support for Manulife, according to Canadian officials. The ministry Tuesday took a prominent newspaper advertisement to stress Manulife is financially solvent.
A court-appointed receiver visited Manulife's offices Monday. But company lawyers questioned whether he was qualified to act as a receiver, saying he had previously left the recognized professional association.
Husnayati said Manulife officials Tuesday met the judge supervising the bankruptcy proceedings, who promised to check into the matter.
The bankruptcy judgement by the Commercial Court is the latest in a series of legal rulings to alarm foreign investors.
Canadian authorities and the International Finance Corporation, a World Bank subsidiary, have warned that the judgement will scare away desperately-needed foreign investors.
Canada's deputy prime minister and finance minister John Manley has contacted the Indonesian government to express concern about the affair, Canadian officials said.
Furious Manulife executives have accused Dharmala of extortion and harassment over the affair. Dharmala representatives have not been available for comment.
The bankruptcy petition granted Thursday was filed over non- payment of a 1999 dividend which was not authorized by shareholders.
Meanwhile, Vice President Hamzah Haz said on Tuesday the government would not interfere in the judicial process, urging all parties to respect the law.
"All parties must respect the law here. The decision will be clear when the Supreme Court delivers the final verdict, and everybody must obey the decision," he was quoted as saying by Antara.
Reports said that the Canadian government had called the Indonesian government to express disappointment over the bankruptcy ruling.
Canada Ambassador for Indonesia Ferry de Kerckhove and the International Finance Corporation, the financial arm of the World Bank, have both said that the bankruptcy decision could only scare away badly needed foreign investment in the country.
IFC is one of the shareholders in AJMI.
Canada is a member of Indonesia's donor consortium called the Consultative Group on Indonesia.
Meanwhile, the plaintiff Paul Sukran who filed the bankruptcy petition with the court, denied he had been backed up by the Gondokusumo family to destroy AJMI.
"I emphasized that I have no relation at all with the Gondokusumo family nor any attempt to ravage AJMI. I haven't even met Suyanto Gondokusumo," Paul told a press conference.