Bob's ownership at Tugu Pratama turn out to be empty shares

Mohamad "Bob" Hasan's 35 stake at insurance company PT Tugu Pratama Indonesia has turned out to be empty shares. Despite the empty shares, Bob continued to enjoyed dividends paid by the company since its establishment in 1991, according to an audit result of the Supreme Audit Agency (BPK).

The audit result was disclosed by legislator Pramono Anung at a hearing between directors of state oil and gas company Pertamina and members of the House of Representatives' Commission VIII on mining and energy.

According to Pramono, Bob had tried to sell his stake at Tugu Pratama to Pertamina at a staggering price of Rp 1 trillion, compared to the insurance firm's total assets of only Rp 1.3 trillion.

Pertamina had initially intended to purchase Bob's stake, but hesitated on suspicion that the 35 percent stake consisted of empty shares.

If Bob had acquired the 35 percent stake in Tugu for free, Pertamina would refuse to pay Bob for the stake.

Pertamina president Baihaki Hakim said the company had been conducting legal and financial audit on Bob's ownership at Tugu Pratama.

However, Bob through PT Nusantara Ampera Bhakti (Nusamba) has reportedly transferred its 35 percent stake to the Indonesian Bank Restructuring Agency (IBRA) as a guarantee for the repayment of Bob Hasan's debts to local banks.

Baihaki said that the company and IBRA were conducting financial due diligence to verify Nusamba's stake in the insurance firm.

Pertamina, he said, was waiting for the BPK to finalize its report before bringing the case to the Attorney General's Office.

Baihaki promised legislators that if there were a criminal crime in the case, that Bob never paid any money for his stake at Tugu Pratama, his party would take legal measures against Bob. "I'll run after him, even until the end of the sky."

"The process takes time, but we want to go through it systematically," Baihaki said at the hearing.

Tugu is 45 percent owned by Pertamina, 20 percent owned by the Pertamina pension fund, while the 35 percent stake is still subject of a dispute between Pertamina and Nusamba.

Under Hasan's control, the company reportedly charged Pertamina marked up premium rates.

According to the Supreme Audit Agency (BPK)'s report, a copy of which was obtained by The Jakarta Post, it is also suspected a loss of Rp 50.49 billion under what the BPK called a dubious transfer of Tugu shares to the Pertamina pension fund. The report did not say by whom the shares had been transferred.

The report, dated Dec. 19, 2000, said indications of tax irregularities had been found in the payment of Tugu dividends, resulting in losses of Rp 39.10 billion to the state.

The BPK also questioned donations of Rp 33 billion made by the insurance company to various foundations and organizations.

Other inefficiencies reported were related to the supply of seven official cars worth Rp 4.56 billion to former members of Pertamina's board of directors, and questionable investment decisions costing Rp 100.08 billion.

Nusamba is a widely diversified business group, which is 80 percent owned by the Dakab, Dharmais and Supersemar foundations linked to former president Soeharto, 10 percent by Bob and 10 percent by Soeharto's eldest son Sigit Hardjojudanto.

Although Hasan was only a minority shareholder in Tugu, he practically controlled the insurance company during the Soeharto era. (*)