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.