Receiver to report Prudential directors

Receiver to report Prudential directors

Abdul Khalik, The Jakarta Post, Jakarta

The lawyer appointed by the court to safeguard the assets of PT
Prudential Life Assurance threatened on Wednesday to report the
company's directors to the police for obstructing him from
carrying out his duties.

Yuhelson, the court-appointed receiver, said that since the
bankruptcy verdict was handed down on April 23, he had not been
able to meet with the directors to transfer assets, as required
by law. He complained that he even had difficulty in locating
them.

"They have intentionally avoided meeting with us. When I
called, they pretended to be busy. I went to the company's office
and found that the building was locked up," Yuhelson told The
Jakarta Post on Wednesday.

According to Articles 12 and 24 of Law No. 4/1998 on
bankruptcy, the bankrupt company loses its right to manage its
assets and a receiver is assigned with authority to take care all
of the company's assets, even though an appeal may have been
lodged with a higher court.

"There are a lot of company's assets that could easily change
hands. The longer it takes for the assets transfer the greater
the risk the assets will decrease in value," said Yuhelson while
stressing that his main duty as a receiver was to keep the
company's assets intact.

He said that there was an indication that the directors could
have committed a crime over the last few days by prolonging the
assets transfer. He added that he could also ask the police to
detain them, based on Article 84 of Law No.4/1998.

The lawyer for Prudential, Ricardo Simanjuntak, denied the
accusation, saying that the receiver could at any time take over
the company's assets. Instead, he complained that the receiver
was too aggressive.

"They keep threatening us although we have complied with what
they want. If they want to take the assets then all they have to
do is come and get them," said Ricardo.

He complained that the receiver's move to place large
advertisements in several newspapers was a waste of company money
as it was unnecessary.

"They have also scared the employees by dismissing four of
them. Now, employees are wondering if they will suffer the same
fate," said Ricardo.

Ricardo said that he had submitted a letter asking the court
to replace Yuhelson with Andrey Sitanggang on the basis that
Yuhelson was a former partner of Lucas, the lawyer of Lee Boo
Siong, who initially brought the bankruptcy petition against
Prudential. Ricardo added that Yuhelson was no longer a member of
the Indonesian Association of Receivers (AKPI). He argued that
both matters were against the regulations.

The commercial court declared Prudential bankrupt on Friday
after a former agent, Malaysian Lee, filed a suit on April 7,
accusing the company of failure to pay him bonuses, demanding
compensation of about Rp 366 billion (US$44 million).

Prudential, which closed its offices temporarily on Monday,
has appealed to the Supreme Court.