Sun Hung Kai suspends 2 executives

Sun Hung Kai suspends 2 executives

JAKARTA (JP): Beleaguered PT Sun Hung Kai Securities Indonesia
said yesterday it has suspended two of its top executives just
prior to the initial share offering of its client, PT Miwon
Indonesia.

Speaking on behalf of Sun Hung Kai, Mardjono Reksodiputro of
the Ali Budiardjo, Nugroho, Reksodiputro law firm announced that
the company's board of commissioners had suspended its president
Edward Yuan Tse Lee and director Heru Djojo Adhiningrat on Oct.
23.

Heru was then reinstalled on Nov. 10 by the company's board of
commissioners.

Utomo Josodirdjo is chief commissioner. John Yip Ying Chee and
Mari Pangestu also sit on the board.

Mardjono said the ownership of Sun Hung Kai had changed
several times. The company is currently 75 percent owned by Sun
Hung Kai Securities Ltd. of Hong Kong, 15 percent by PT Catur
Mitra Sekata and 10 percent by Pacific Reliance Ltd.

Last week, the Capital Market Supervisory Agency (Bapepam)
suspended Sun Hung Kai from underwriting and stock broking
activities for its failure to fulfill its obligations in
underwriting Miwon's initial public offering.

The agency also suspended the working permits of six
executives of the company.

Miwon, a South Korean joint venture, offered 25 million shares
during its recent initial public offering, but only six million
shares were subscribed.

Sun Hung Kai underwrote 21.55 million shares of Miwon's
offered shares on a full commitment principle. This means that
Sun Hung Kai should have bought all the unsold shares.

The head of Bapepam's legal bureau, I Nyoman Tjager, said
yesterday that the agency would restore Sun Hung Kai's license
and also the working permits of its six executives when the
company fulfills its obligation to Miwon. (rid)