Canada-based life insurer Manulife Financial has filed a HK$400 million damages lawsuit against Hong Kong companies and individuals involved in an alleged Indonesian share scam.
The local companies and individuals were party to a bogus Indonesian share transaction in conflict with Manulife's legal purchase of the stock, according to a High Court writ.
As a result of the dispute, criminal charges were filed against Manulife in Indonesia, tarnishing the company's reputation and costing it US$50 million, the insurer said.
Manulife in turn filed a complaint with the Joint Financial Intelligence Unit, the Hong Kong police team that investigates money laundering.
'Not only do we seek to set the record straight, but we cannot allow Manulife's solid reputation . . . to be damaged without cause or recrimination,' said Vic Apps, Manulife's executive vice-president and general manager for Asia.
The share saga involves a 40 per cent stake in Manulife Indonesia. Prior to October 26, it was held by Dharmala Sakti Sejahtera (DSS), an Indonesian firm controlled by Suyanto Gondokusumo.