Bapepam fines Medco for breaching regulation
Friday, April 27 2001 - 04:30 AM WIB
The Capital Market Supervisory Agency (Bapepam) has imposed fines of Rp 750 million (US$ = 12,000) to local oil and gas company PT Medco Energy for breaching market regulations on transactions with conflicts of interests, Suara Karya daily reported on Friday.
The daily quoted the head of Bapepam legal bureau, Robinson Simbolon, as saying that Medco had been faulted for not reporting the Rp 728.027 billion transactions with affiliate companies to its independent shareholders.
According to Robinson, the transactions in question are those pursued with three affiliated companies, namely PT Medco Duta, PT Medco Intidinamika and PT Medco Central Asia.
Medco's claims with Duta and Intidinamika were resulted from inter-company account transactions. In addition, Medco Energy converted a guarantee bond that must be paid by Medco Central Asia into a normal claim.
Because of that conflict of interest transactions, Bapepam fined Medco Rp 500 million, and required Medco to pay an additional Rp 250 million to the state treasury.
Medco is also required to call an extraordinary shareholders meeting to report those transactions and get approval from its independent shareholders. (*)