JAKARTA (Yosefardi) – PT Cipaganti Citra Graha Tbk (CPGT), transportation services unit of Cipaganti Group, reported that West Java regional police (Polda) has arrested 3 executives of the company for fraud against 8700 partners with total loss of Rp3.2 trillion.
That three executives arrested are Andianto Setiabudi, president director of CPGT, Julia Sri Redjeki (Chief of Commissioner), and Yulinda Tjendrawati (Commissioner).
They were arrested as they also act as management of cooperative of Cipaganti Karya Guna Persada.
Media earlier reported West Java police said AS, owner of Cipaganti Group, has collected funds from the partners in the period of 2008-May 2014 with profit sharing scheme per month.
According to agreement, the funds should be managed by cooperatives for housing, gas station, transportation, hotels, and heavy equipments. Since March 2014, however, the cooperatives reportedly suspended payments to investors and partners.
Cipaganti, in a disclosure to the Indonesia Stock Exchange (IDX) Tuesday (June 24), said as its financial activity is separated from cooperative’s financial activity, then the case would not impact on its financial condition and projection.
The company will in near term hold shareholders meeting for appointing new management for the sake of the company’s going concern.
At 3 pm Jakarta time, CPGT plummeted 23.75% to Rp61 per share. Cipaganti entered the stock market on June 27, 2013 through initial public offering (IPO) of shares at Rp190 per share. The stock rallied to as high as Rp455 in November 2013, but has since collapsed 85%.