Probe into Manulife judge-lawyer link begins
The Jakarta Post, Jakarta
The Ministry of Justice extended its probe into the bankruptcy verdict issued against PT Asuransi Jiwa Manulife Indonesia (AJMI), questioning links between a daughter of one of the judges and Manulife's legal challenger.
Chief Justice Bagir Manan also said the Supreme Court would decide on Manulife's appeal against the bankruptcy verdict before July 15.
Minister of Justice and Human Rights Yusril Ihza Mahendra said on Thursday that his ministry would questioned one of the judge's daughters and Lucas, a lawyer with connections to the now defunct PT Dharmala Sakti Sejahtera (DSS).
Dharmala, once Manulife's partner in AJMI, filed the bankruptcy petition against the insurance firm over an unpaid dividend.
"This lawyer Lucas is the connection as he is the lawyer of DSS (Dharmala) and the daughter of the judge is working in Lucas' office," Yusril told reporters after a Cabinet meeting. "There are signs of collusion and we must investigate them," he said.
Last month, the Jakarta Commercial Court declared the Canada- based AJMI bankrupt in a verdict that critics said reeked of collusion.
Two of the three judges ruled that AJMI's unpaid dividend was actually an outstanding debt, which was enough to declare the company bankrupt.
Companies, however, often withhold dividends with the approval of the shareholders' general meeting. Manulife said it did just that.
In response to the controversial verdict the Justice Ministry launched a probe, focusing at first on the three judges.
Initially to be concluded within 10 days, Yusril said his men needed more time. He said the investigation team had problems calling witnesses, and were now faced with new information.
Judge CH. Kristi Purnamiwulan said in an affidavit she signed last April that her daughter, 26-year old Dyah Widowati Candradari, was a staff member in Lucas' law office.
In that document, apparently a letter of sponsorship, a copy of which The Jakarta Post obtained last week, Kristi said she was capable of financing her daughter's stay in Australia while she studied for her master's degree.
Neither Kristi, Dyah nor Lucas could be reached for comment.
Yusril said his ministry would examine the judges' bank accounts, including that of the daughter. "We've received their powers of attorney, but we must coordinate first with Bank Indonesia."
His team has also sought the help of the Public Servant's Wealth Audit Commission (KPKPN). Yusril said he expected to see results over the next two to three days.
Chief Justice Bagir, meanwhile, said a team of judges specializing in high profile cases had been appointed to examine Manulife's appeal.
Under the bankruptcy law, the Supreme Court must issue its verdict within 30 days after an appeal has been lodged.
The bankrupting of AJMI drew fire from the Canadian government, and presented foreign investors with yet another example of Indonesia's farcical judicial system.
Following the bankruptcy of Dharmala Sakti in 2000, the Dharmala group tried four times to send AJMI to the wall on an assortment of spurious grounds.
Their legal dispute began with Dharmala's bankruptcy, which allowed Manulife to gain control of its former partner's 40 percent share in AJMI following an auction.
The Dharmala Group and Manulife have been at loggerheads ever since. Manulife initiated investigations in Hong Kong and Singapore to prove Dharmala's charges against it were baseless.
AJMI is 71 percent owned by Manulife with the remaining shares owned by the International Finance Corporation and local firm PT Tirta Dana Nugraha.
It is Indonesia's fourth largest life insurance firm with total assets worth Rp 3.1 trillion (about US$356 million)