Citra Marga Nushapala Persada plans to refresh its board of directors and commissioners. (ID Photo/David Gita Roza)

CMNP to Refresh BOD, BOC After Audit Finds Fund Misuse: Source


AUGUST 17, 2015

Jakarta. Citra Marga Nushapala Persada, Indonesia’s second-biggest toll road operator, plans to refresh its board of directors and commissioners, after an audit found irregularities in the management of company finances, according to a source.

CMNP has notified the Indonesia Stock Exchange that it plans to hold an annual general meeting of shareholders on Wednesday to approve the financial report for the 2014 fiscal year, approve the use of last year’s profits, hear a presentation by a special audit team, and shake up both boards.

A source from the audit team, speaking on condition of anonymity, said the plan to replace members of the boards was triggered by an initial finding from the team that spending of up to Rp 35 billion ($2.52 million) could not be properly accounted for.

The source said one of the commissioners was suspected of having taken that sum over a period of 15 months.

“The use of funds for personal interests without being charged any interests disadvantaged the company, which is a public company whose shares are held by many investors,” the source said.

The source did not name the commissioner suspected of taking the money.

However, CMNP finance director Indrawan Sumantri denied this was the reason the boards were being refreshed.

“The change in the structure of the [boards of] commissioners and directors was based on the request from CMNP shareholders, who are seeking to refresh the management at the company,” he said.

He denied that any funds had been misused by any of the directors or commissioners, arguing that an independent auditor had given an unqualified opinion on the company’s financial report.

CMNP reported Rp 138.43 billion in profit in the first quarter of this year, up 6 percent from the same period last year.

Three British Virgin Island-based companies – Merah Putih International, Tridan Purnamasari and Blue Coral Capital – own a majority stake in CMNP.

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