Corporate Corruption in Indonesia: the Case of Cipaganti Karya Guna Persada

The director of Indonesian publicly listed company Cipaganti Citra Graha, Andianto Setiabudi, together with chairwoman Julia Sri Redjeki and commissioner Yulinda Tjendrawati have been named suspects in a new embezzlement case by the West Java police. The three people are accused of embezzling funds and equity from the Cipaganti Karya Guna Persada cooperative. More than 8,700 people had invested a minimum amount of IDR 100 million (USD $8,333) in the cooperative’s profit sharing program (for a return of 1.5 percent per month).

Businesses of Cipaganti Citra Graha, which conducted an initial public offering (IPO) on the Indonesia Stock Exchange in July 2013, involve transportation services, property and heavy equipment. Reportedly, the director, chairwoman and commissioner embezzled IDR 3.2 trillion (USD $266 million), between 2008 and May 2014, from the Cipaganti Karya Guna Persada cooperative, which owns a 4.92 percent stake in publicly listed Cipaganti Citra Graha.

In a response to the scandal, the management of Cipaganti Citra Graha said that the listed company cannot be held responsible for the fraudulent actions of the president director, chairwoman and commissioner. Particularly since these actions were made related to the cooperative (Cipaganti Karya Guna Persada), not the listed company (Cipaganti Citra Graha). “The two are two separate entities,” said Corporate Secretary Toto Moeljono. Vice President Director Cece Kadarisman has been appointed acting chief of the company.


Stock Quote Cipaganti Citra Graha - CPGT:

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