Code JDMBA2b: Telkom Corruption Investigation

Tuesday, June 21, 2005

Telkom Corruption Investigation

I was not happy reading this Jakarta Post story as TLK is one of my major holdings and has done quite well for me lately:
http://www.thejakartapost.com/detailbusiness.asp?fileid=20050621.L01&irec=0

"The government-sponsored interdepartmental corruption eradication team is intensifying its investigation into corruption allegations at state telecommunication company PT Telkom, following initial evidence of graft allegedly committed by the company's management."

"under the new contract Telkom should pay an annual payment to MGTI within the contract period totaling US$517 million, aside from assuming full responsibility to build and finance new telecommunication facilities in the two provinces"

"All MGTI shareholders, including Telkom's rival state telecommunications firm PT Indonesian Satellite Corp. (Indosat), Widya Duta Infotel, Telstra Global Ltd, NTT Finance and Sumitomo Corporation agreed to sell their entire stake to PT Alberta Telecommunication (Alberta) for a total of $266 million in January last year"

"Aside from the MGTI deal, the anticorruption team is also probing allegations of kickbacks during the construction of network infrastructure for Telkom's latest cellular technology Telkom Flexi."

It appears that TLK has massively overpaid for MGTI. Although some financing issues were alleged to have blocked the $266 million deal last year, I am sure that TLK could have financed it in the international debt markets. TLK is profitable, growing and in a leadership position in India. Somebody would have purchased bonds at a reasonable rate of return so TLK could have financed the deal. I am concerned about the kickback allegations. I am going to hold onto my TLK shares for the moment as I still feel that they are way undervalued (assuming any possible corruption can be eliminated) but that does not mean I am happy about this. Perhaps if TLK falls back below 20 based on continued reaction to this news I will buy more shares. My future decision to remain a TLK shareholder hinges upon the elimination of any corrupt management going forward.

Disclosure: I am long TLK

Another recent TLK related story (on a more positive note):
http://jdmba2b.blogspot.com/2005/05/motorola-going-after-small-towns-to.html

3 Comments:

At 7/29/2005 7:22 PM, Anonymous Anonymous said...

Look, brother, when you invested in TLK you had to know that it was corrupt. TLK is largely an exercise in nepotism and favoritism among the Jakarta elite. Just as Indonesia has been a corrupt Republic since they threw out the Dutch and Portugese and English after World War II, they created their own thing. You want TLK to be "clean." You are dreaming of creating something clean in a filthy environment. Should the corruption eradication people really do a job, maybe it will signal that the Rule of Law is coming to Indonesia. Hope springs eternal in the breast of man. Good luck in your idealism.

 
At 2/05/2009 12:02 AM, Anonymous Anonymous said...

A片,A片,成人網站,成人影片,色情,情色網,情色,AV,AV女優,成人影城,成人,色情A片,日本AV,免費成人影片,成人影片,SEX,免費A片,A片下載,免費A片下載,做愛,情色A片,色情影片,H漫,A漫,18成人

a片,色情影片,情色電影,a片,色情,情色網,情色,av,av女優,成人影城,成人,色情a片,日本av,免費成人影片,成人影片,情色a片,sex,免費a片,a片下載,免費a片下載

情趣用品,情趣用品,情趣,情趣,情趣用品,情趣用品,情趣,情趣,情趣用品,情趣用品,情趣,情趣

A片,A片,A片下載,做愛,成人電影,.18成人,日本A片,情色小說,情色電影,成人影城,自拍,情色論壇,成人論壇,情色貼圖,情色,免費A片,成人,成人網站,成人圖片,AV女優,成人光碟,色情,色情影片,免費A片下載,SEX,AV,色情網站,本土自拍,性愛,成人影片,情色文學,成人文章,成人圖片區,成人貼圖

情色,AV女優,UT聊天室,聊天室,A片,視訊聊天室


UT聊天室,視訊聊天室,辣妹視訊,視訊辣妹,情色視訊,視訊,080視訊聊天室,視訊交友90739,美女視訊,視訊美女,免費視訊聊天室,免費視訊聊天,免費視訊,視訊聊天室,視訊聊天,視訊交友網,視訊交友,情人視訊網,成人視訊,哈啦聊天室,UT聊天室,豆豆聊天室,
聊天室,聊天,色情聊天室,色情,尋夢園聊天室,聊天室尋夢園,080聊天室,080苗栗人聊天室,柔情聊天網,小高聊天室,上班族聊天室,080中部人聊天室,中部人聊天室,成人聊天室,成人

 
At 4/30/2016 12:57 AM, Blogger Kartik said...

Somebody would have purchased bonds at a reasonable rate of return so TLK could have financed the deal. I am concerned about the kickback allegations.Justiceyou want TLK to be "clean." You are dreaming of creating something clean in a filthy environment. Should the corruption eradication people really do a job, maybe it will signal that the Rule of Law is coming to Indonesia. Hope springs eternal in the breast of man.

 

Post a Comment

<< Home