07 May 2007
BPK Asks BNI to Close London Branch
The Head of the Supreme Audit Agency (BPK), Anwar Nasution, urged PT Bank Negara Indonesia (BNI) to close their branch office in London. “Just close the bank. It has been a source of problems,” said Anwar when handing over the BPK Examination Results Summary Semester II/2006 to the House of Representatives in Jakarta yesterday (3/5).
Based on the BPK audit into BNI London branch, he said in the last five years, between 2001 and 2005, the branch at the United Kingdom's capital only undermined the head office. For example, the placement of BNI’s foreign funds head office are loaned to foreign companies and caused stagnation of credit.
He said the monetary authority in UK has even asked the BNI London branch to close.
The former BI Deputy Senior Governor did not say in detail about BNI London branch's transactions that BPK considered as problematic. However, based on Tempo's analysis, BPK once questioned the deposit agreement between BNI London and Rio Tinto European Holdings with outstanding per 31 December, 2004 amounting to US$43.8 million. BPK also questioned the promissory notes purchase of Parmalat Participacoes Do Brasil Ltd amounting to US$2 million and SR Gent's credit facility with 13 million pound sterling outstanding.
BNI Managing Director, Sigit Pramono and BNI Secretary , Intan Abdams have not been able to ask for comments. Yesterday, when they were telephoned, Sigit said he was in a meeting.
However, in the BPK report, the Examination Result of Semester I/2006, BNI's board of directors explained, 'In line with the Commissioner's suggestion, we're now asking for a legal opinion based on Indonesian law regarding BNI position in the transaction and we can perform a legal risk assessment over the transaction. BNI London has been asked to stop the transaction with Rio Tinto and to study the termination of current contracts.”
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tempo
Based on the BPK audit into BNI London branch, he said in the last five years, between 2001 and 2005, the branch at the United Kingdom's capital only undermined the head office. For example, the placement of BNI’s foreign funds head office are loaned to foreign companies and caused stagnation of credit.
He said the monetary authority in UK has even asked the BNI London branch to close.
The former BI Deputy Senior Governor did not say in detail about BNI London branch's transactions that BPK considered as problematic. However, based on Tempo's analysis, BPK once questioned the deposit agreement between BNI London and Rio Tinto European Holdings with outstanding per 31 December, 2004 amounting to US$43.8 million. BPK also questioned the promissory notes purchase of Parmalat Participacoes Do Brasil Ltd amounting to US$2 million and SR Gent's credit facility with 13 million pound sterling outstanding.
BNI Managing Director, Sigit Pramono and BNI Secretary , Intan Abdams have not been able to ask for comments. Yesterday, when they were telephoned, Sigit said he was in a meeting.
However, in the BPK report, the Examination Result of Semester I/2006, BNI's board of directors explained, 'In line with the Commissioner's suggestion, we're now asking for a legal opinion based on Indonesian law regarding BNI position in the transaction and we can perform a legal risk assessment over the transaction. BNI London has been asked to stop the transaction with Rio Tinto and to study the termination of current contracts.”
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tempo
Labels: Bank, Internet News, Money
