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Sarijaya bosses can't escape: Bapepam-LK
The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is not easily accepting a claim made by PT Sarijaya Permana Sekuritas top executives that an alleged fraud in the running of its investment funds had been solely committed by the owner-broker concerned
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The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is not easily accepting a claim made by PT Sarijaya Permana Sekuritas top executives that an alleged fraud in the running of its investment funds had been solely committed by the owner-broker concerned.
Bapepam-LK chairman Fuad Rahmany insisted Wednesday Sarijaya management should also be held responsible in respect of the alleged embezzlement of at least Rp 245 billion (US$22.5 million) of investor's money.
Fuad argued the management should have had full knowledge of actions by Sarijaya owner Herman Ramli concerning the misuse of client accounts in pursuit of his private interests, and should have been able to prevent any such practices.
"The management should take the responsibility. It's their mistake for being controlled (by the owner) for the purpose of fraudulent practices. This is evidence that they were not professional."
"They should not have allowed other people to intervene in their (banking) operations, especially people who did not have the authority to run the management (of the bank)," said Fuad.
Sarijaya is 100-percent owned by Herman, who serves as the company's president commissioner.
According to the existing law on companies, president commissioners have no authority to get involved in the day-to-day operational activities of a company.
Bapepam plans to question the Sarijaya board of directors soon.
Sarijaya director Zulfian Alamsyah claimed earlier that the case only implicated Herman, and that the management had no knowledge of his misconduct.
Herman, the younger brother of Rudy Ramli, the former founder of the now-defunct Bank Bali, has been under police custody since Dec. 24 for the alleged financial scam.
He allegedly channeled investor's money to 17 new accounts under other's people names and used the accounts to profit from trading on the stock market.
The Indonesia Stock Exchange (IDX) has suspended Sarijaya's trading activities since Jan. 6.
Meanwhile, the Sarijaya management announced Wednesday that a number of investors had indicated interest in taking over the firm, which is one of the country's largest securities houses with 48 branches in Java, Bali, Sumatra, Kalimantan and Sulawesi.
Among them is a consortium of investors from Hongkong, Melbourne in Australia and Indonesia.
A representative of the consortium Vier Jamal said some Rp 400 billion had been prepared for the acquiring of Sarijaya. This included Rp 250 billion for restructuring and recovery purposes with the remaining Rp 150 billion for business expansion.
"The consortium has no link with the existing owner. There won't be any buyback allowed for the existing owner
However, Bapepam said it would still carry out a selection process to determine which eligible investors should take over the securities business.
So far, there are four other investors which have interests in buying Sarijaya, with the authorities refusing to name the investors due to the need for confidentiality.
The Sarijaya case is the latest fraud so far involving securities houses. Previously, PT Antaboga Delta Sekuritas was charged for allegedly misusing investor funds worth Rp 1.4 trillion.
In a bid to prevent such cases from recurring, the IDX has prepared a new system that will allow every investor to check their accounts and assets recorded by the Indonesia Central Securities Depository (KSEI).
At present, securities houses are not giving out account report to clients and regulators at the same time, a delay that may provide leeway for fraud.
IDX suspends Dinar Sekuritas
The IDX suspended Wednesday trading activities of securities house PT Dinar Sekuritas at the request of the company to facilitate internal restructuring.
IDX president director Erry Firmansyah brushed aside speculation that the suspension was made in connection with the firm's exposure to the notorious Bakrie repo chain.
Dinar and Sarijaya are among the securities houses, that were involved in purchasing pledged share products of PT Bakrie & Brothers for Rp 35 billion and Rp 30 billion, respectively, in return for shares in Bakrie.
Bapepam is currently investigating 49 securities houses for irregularities.
