Multipolar to battle on against Wal-Mart

JAKARTA (JP): PT Multipolar Corporation, a publicly listed retailer, announced yesterday that it will continue with legal proceedings against its U.S. partner, retail giant Wal-Mart, despite a call from a U.S. district judge to halt the action.

A lawyer for PT Multipolar, Hotman Paris Hutapea, said the statement by U.S. judge Claudia Wilkins disregarded a provisional ruling by an Indonesian judge, which banned 12 Wal-Mart expatriate employees from leaving the country.

"It's strange that we are told by a U.S judge to halt a lawsuit being conducted in the Indonesian courts. It's an arrogant decision. Maybe, it's the first time in the world," Hotman said. He has received a copy of the ruling made by the U.S judge.

He said his clients' case would be heard by West Jakarta District Court on April 23. "We will win the case without the presence of Wal-Mart representatives," he said.

PT Multipolar Corporation and two subsidiaries, PT Multipolar Perkasa and PT Inka Sejati, are suing Wal-Mart for losses worth US$98.8 million caused by improper business conduct.

Multipolar, a subsidiary of the Lippo Group, has also asked the court to order the defendants to pay nonmaterial losses of US$100 million.

The plaintiff alleges that Wal-Mart mismanaged a joint venture to open two Wal-Mart stores in Indonesia, manipulated data and issued misleading budgets.

The 12 expatriates employed by Wal-Mart allegedly approved each others' expense claims for excessive entertainment and personal expenditure on items such as airline tickets, hotel bills, children's school fees and sports equipment.

Hotman said yesterday that the executives left the country before the Indonesian court's decision.

PT Multipolar signed a joint venture agreement with Wal-Mart on Aug. 16, 1995 to open stores here under the Wal-Mart name. PT Multipolar was to supply capital of US$20 million for each store.

They have so far opened two stores, one in the Lippo Supermal in Karawaci, Tangerang, and one in Megamal Pluit, North Jakarta.

Wal-Mart have in turn accused Multipolar of violating their agreement by purchasing shares in PT Matahari Putra Prima, a rival retailer. (jun)