Directors of CKRA were reported to IDX and OJK for embezzlement, accounting manipulation and false disclosure matters lead by Beolio Muliadi their CEO

JAKARTA -  In recent days the public company, PT. Cakra Mineral Tbk., which is listed on IDX with stock code “CKRA”, has been engulfed by claims of fraud, account manipulation and false disclosure. Now, the scandals continue growing as more and more investors stand up to claim their losses suffered from the misconduct of directors of the public company.

Two months ago, the original shareholders of Takaras and Murui, which are the two zircon mines reported having been acquired with 55% ownership by CKRA in its 2014 and 2015 annual reports, accused Mr. Boelio Muliadi (the President Director of CKRA), Mr. Argo Trinandityo (Director), Mr. Dexter Sjarif Putra (Director) and Mr. Harun Abidin (who is a nominee and a shareholder of CKRA) colluded to induce them to sign a share purchase agreement with false representations and fails to pay any consideration as set forth in the agreement and fails to pay any consideration as set forth in the agreement.

Now, an International investor, which holds a large volume of CKRA shares, claims that it is suffering huge losses due to the false, misleading and inaccurate information provided by CKRA in its public annual reports and financial reports.  For over two years, the directors of CKRA falsely stated that CKRA owns 55% shareholding in Murui since August 2014, however CKRA has never been registered as shareholder of Murui.

Further, the directors of CKRA intentionally inflated the asset value of CKRA by falsely consolidating the Murui accounts into its financial statements and overstating the paid-up capital of two mines which prevent investors from making sound investment decisions and cause investors to suffer massive losses from those false, misleading and inaccurate disclosures which were released through the platform of the Indonesian Stock Market (IDX) and the Indonesian regulator the (OJK).

If the above accusation against the directors of CKRA and their President Director Beolio Muluadi proves to be true, the directors of CKRA are violating the anti-fraud, reporting and internal control provisions of Indonesian securities laws and regulations.

The illegal conduct of  Beolio Muluadi and the directors of CKRA are seriously damaging the interests of both foreign and domestic investors. We believe if this case fails to be well handled and addressed publicly by the regulators and the stock exchange; it will seriously spoil the reputation and image of Indonesia capital markets and lead our market in losing its attraction in the eyes of foreign investors.

If the regulators continue to do nothing and let our stock markets be dominated by illegal activities, the Indonesia stock market will become a platform flooded with fraudsters in amassing fortunes from public investors and the whole financial system in Indonesia will be jeopardized.  We expect our regulators to conduct a profound investigation into this case as soon as possible to give victims, investors and public a satisfactory answer said Mr. Jeffeson lawyer for foreign investor Cedrus Investments Limited and Interzircon the mine owners. (yy)