Astro: Firm framing CEO to duck US$300mil payment
Astro All Asia Networks Limited (Astro) and its group chief executive officer cum executive deputy chairperson Ralph Marshall has denied any wrong-doing related to the allegations of misusing operational funds amounting to US$90 million (RM270 million).
Astro All Asia Networks Limited (Astro) and its group chief executive officer cum executive deputy chairperson Ralph Marshall has denied any wrong-doing related to the allegations of misusing operational funds amounting to US$90 million (RM270 million).
Instead, it claimed that the unsubstantiated allegations were part of Indonesian Lippo Group's efforts to dodge paying US$300 milliom (RM909 million)in damages awarded to Astro.
Lippo Group is one of Indonesia's largest conglomerates with interests in finance, property and infrastructure.
Astro said it will take all necessary steps to challenge these "defamatory allegations" against Marshall (
left
), including seeking relief available in international law.
"Astro remains confident that these allegations will be prove to be unsubstantiated and without basis, as had been on previous occasions," said the company in a statement.
Indonesian media had earlier reported that Marshall had been accused of misusing operational funds worth US$90 million belonging to Astro Nusantara, an Astro venture in Indonesia, and is on the wanted persons list of the Indonesian police.
No action from Indonesian authorities
However, Astro claimed Marshall and his respective counsel in Indonesia have no knowledge of any police summons, nor have they been provided with any details whatsoever of the arrest warrant.
None of the Indonesian authorities referred to in the press have approached Astro or Marshall to assist in any investigation, it said.
Astro's lawyers have rejected the allegations, labelling them as "misleading".
"What is happening here is very clear," said Astro's lawyer Hafzan Taher.
"Astro and Lippo had a commercial dispute and decided to resolve it through international arbitration. Lippo lost the case and was ordered to pay up to US$300 million in damages to Astro, and it is trying to avoid doing so by filing criminal charges against Mr. Marshall.
"Their calculation is that if they can exploit the criminal law to cause confusion and fear, they can avoid paying the damages," Hafzan was quoted as saying in the statement,
According to the statement, Astro entered into a joint venture with First Media and certain other affiliates of the Lippo Group in 2005, to set up a DTH pay-TV business in Indonesia to be launched by PT Direct Vision, a subsidiary of First Media.
As the joint venture was not concluded, and pursuant to the dispute resolution process agreed between the parties, Astro commenced arbitration proceedings against Lippo Group under the Singapore International Arbitration Centre Rules to recover approximately US$560 million (RM17,000 million) which it had incurred to establish the pay-TV business for PT Direct Vision.
Astro said that in 2008, about the time parties were attempting to resolve the dispute relating to the establishment of the pay-TV business of PT Direct Vision and during the course of the subsequent arbitration proceedings in 2009, police reports had been filed by certain individuals associated with the Lippo Group, alleging criminal misconduct against certain senior executives of Astro, including Marshall, and employees of PT Direct Vision.
The Indonesian police, said Astro, had conducted extensive investigations of these allegations with the full co-operation of all the parties named in the police reports, including Marshall.
"After a full investigation, Indonesian police concluded that there was no evidence of criminal conduct.
"As such, the Indonesian police issued an order to cease investigations on the basis they were satisfied there was no evidence whatsoever to support the allegations."
In addition, Astro pointed out that in February 2010, a tribunal comprising internationally renowned arbitrators, unanimously ruled in favour of Astro, awarding Astro US$300 million in damages, interest and costs, but the Lippo Group has to date not paid any part of the amount.
First Media has appealed the decision.


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