HSBC apologises to Mukesh Ambani for putting name in list of beneficiary account holders
ET Bureau Jan 4, 2012, 10.33AM IST
Tags: RIL| Reliance Industries Limited
MUMBAI: The Swiss unit of HSBC Plc has apologised to Mukesh Ambani for embroiling him in an investigation by India's income-tax authorities after the Reliance chairman's name cropped up in a list of people with beneficiary accounts in Switzerland. In a recent letter to Ambani, the bank clarified that neither he, nor Reliance Industries, was the owner of any beneficiary account with the bank's private banking division.
The letter, signed by Petra Muheim Quick, the bank's deputy general counsel in Switzerland, and Stephen Barney, director of the private banking business, attributes the situation to "administrative errors", which it blames on Ambani's past association with Flag Telecom, which had a commercial account with the bank.
Some months ago, the French authorities had handed India a detailed list of people with beneficial accounts in HSBC, Switzerland. This information has been used by the Indian authorities to levy additional taxes on people suspected of stashing money in undeclared overseas accounts.
The information became available after an HSBC employee stole the data and handed it over to the French authorities. In June 2011, the Swiss arm of the London-headquartered bank, HSBC Private Bank (Suisse) SA, was told by the Swiss government that France would share the data with India.
The letter, whose contents were described to ET by people familiar with it, acknowledges that Ambani's name was wrongly included in that list. "During our internal review and investigation following the data theft, we have established that due to an administrative error your name has been incorrectly connected to certain accounts held with us which we would confirm to you were not connected with you either as holder or beneficial owner of these accounts," it says.
This erroneous information we believe might be part of the data to be shared with the Indian authorities," the letter adds.
"We can advise that the records have been corrected. Finally, after having reviewed our files, we can confirm that neither at the time of the data theft nor today you or Reliance Industries Limited have been or are the holder, or, from our records, the beneficial owner of any account with our bank in Switzerland." The letter then appears to acknowledge the inconvenience caused.
"Clearly, we understand that this is not an acceptable situation for you. Please accept our unreserved apologies in this respect," the letter adds. A Reliance Industries spokesperson did not reply to an email questionnaire on the issue. "We will be unable to respond to your queries on account of customer confidentiality," an HSBC spokesperson said. The significance of the letter lies in the fact that it confirms that Ambani's name was indeed in the list of people with overseas accounts given to India by the French authorities.
The Indian government and the Income-Tax Department have not publicly confirmed this fact before. The tax authorities are believed to have sought details of the overseas account from Ambani and sent him so-called demand notices asking for more tax.
This is also the first time HSBC has acknowledged the existence of the list, which has became a talking point at parties attended by the monied. But the information contained in the HSBC letter shows that Ambani's name was included by mistake, giving him the opportunity to clarify the matter with the Indian revenue authorities.
According to the bank, the genesis of the error lay in Ambani's past directorship of Flag Telecom till 2005. Flag had a commercial bank account with HSBC from December 2004 to August 2007. Mukesh Ambani was one of the authorised signatories to the account.
"After detailed consideration of our investigations, we believe that this is the result of your data being held in connection with the account of Flag Telecom Group Limited," HSBC says. Flag is now owned by Reliance Communications and is a part of the Anil Ambani group.
1. "During our internal review and investigation following the data theft, we have established that due to an administrative error your name has been incorrectly connected to certain accounts held with us which we would confirm to you were not connected with you either as holder or beneficial owner of these accounts," it says.
"Selama review internal dan penyelidikan setelah pencurian data, kami telah menetapkan bahwa karena adanya kesalahan administrasi nama anda tidak terhubung dengan benar ke rekening tertentu yang dimiliki oleh kami dan kami akan konfirmasikan kepada Anda tidak terhubung dengan Anda baik sebagai pemegang atau pemilik bermanfaat rekening tersebut, "kata itu.
2. "We can advise that the records have been corrected. Finally, after having reviewed our files, we can confirm that neither at the time of the data theft nor today you or Reliance Industries Limited have been or are the holder, or, from our records, the beneficial owner of any account with our bank in Switzerland."
"Kami dapat menyarankan bahwa catatan telah dikoreksi Akhirnya,. Setelah terakhir file-file kita, kita bisa memastikan bahwa baik pada saat pencurian data maupun hari ini Anda atau Reliance Industries Limited telah atau dudukan, atau, dari catatan kami , pemilik manfaat dari setiap rekening dengan bank kami di Swiss. "
SUMBER :
http://articles.economictimes.indiatimes.com/2012-01-04/news/30589040_1_mukesh-ambani-account-private-bankingJAKARTA, KOMPAS.com - Uncertain global economic conditions which are expected to still take place next year have caused many sides to predict different growth rates for Indonesia’s economy in 2012.
Bank Indonesia (BI/the central bank) which has initially set a projection of 6.7 percent -- similar to that of the government-- for Indonesia’s economic growth in 2012 has recently revised it down. It revised down its forecast on the country’s economic growth to below 6.5 percent in 2012 due to a worsening of the economic crisis in Europe.
"Following the decline in the global economy and commodity prices, economic growth will tend to drop to below 6.5 percent while inflation in 2012 will also be lower than the forecast of 4.7 percent," the director of BI’s directorate of economic research and monetary policy, Perry Warjiyo, said
As the European economic crisis had shown no sign of abating Bank Indonesia had to prepare various policies to address the crisis particularly its impact on the financial market, he said. "BI will make various adjustments by issuing a combination of policies based on not only inflation forecast but also developments in the European economic crisis by observing developments in exchange rates, interest rates and capital inflows."
His colleagues, Difi A Johansyah who is a BI spokesman, said the world’s economic slowdown is estimated to begin affecting Indonesia’s economic growth in 2012 so that its economic growth would be at a range of between 6.3 percent and 6.7 percent. Difi said that the world’s economic growth is predicted to slow down due to uncertainty in the settlement of sovereign debt and fiscal problems in Europe and the US.
In 2013 however the country’s economy is predicted to grow between 6.4 percent and 6.8 percent in line with improving world economic conditions, he said when explaining the results of a BI board of governors’ meeting.
As to BI’s projection on the country’s economic growth, BI Governor Darmin Nasution shared Difi’s prediction, saying it was expected to be at between 6.3 percent and 6.7 percent or slightly lower than that in 2011. This was due to the slowing down of the global economy.
In order to maintain national economic growth momentum, the bases of the domestic economic growth should be further reinforced, he said. The central bank governor said that the lowering of BI’s benchmark rate to 6 percent in October would revive domestic financing sources, particularly banks.
Darmin said that with the prediction of economic growth about 6.3 percent - 6.7 percent, BI estimated the need for minimal financing at Rp598 trillion or equal to the growth rate of credits at 26.9 percent. "Next year, credit growth is expected to reach 24 - 25 percent."
According to the BI governor, investment which in 2011 recorded a growth of 7.7 percent, was expected to experience an increased growth of about 9.7 percent - 10.1 percent in 2012 which in turn would maintain the people’s purchasing power. It would also be able to maintain household consumption level at 4.7 percent - 5.1 percent.
In the meantime, the Asian Development Bank (ADB) has also revised down its prediction of Indonesia’s economic growth in 2012 from 6.8 percent to 6.5 percent. However, if the European crisis continued to worsen, the ADB predicted Indonesia’s economic growth at 6.3 percent. This projection rate is similar to that of the World Bank which also put its prediction of Indonesia’s economic growth in 2012 at 6.3 percent.
Even it could be lower than that (6.3 percent) if the crisis falls into a deep recession. "If the euro zone and the United States still fall into a deep recession the ADB predicts the Indonesian economic growth will drop further by 1.0 percent to 5.5 percent," Head of the ADB Regional Economic Integration Office Iwan Jaya Aziz said in a latest Asian Economic Monitor report released this week.
The low economic prediction was also made by Bank Mandiri chief economist Destry Damayanti, who said that the Indonesian economic growth next year would decline from the government’s target of 6.7 percent to stay at a level of 6.2 percent in 2012.
Bank Indonesia (BI/the central bank) which has initially set a projection of 6.7 percent -- similar to that of the government-- for Indonesia’s economic growth in 2012 has recently revised it down. It revised down its forecast on the country’s economic growth to below 6.5 percent in 2012 due to a worsening of the economic crisis in Europe.
"Following the decline in the global economy and commodity prices, economic growth will tend to drop to below 6.5 percent while inflation in 2012 will also be lower than the forecast of 4.7 percent," the director of BI’s directorate of economic research and monetary policy, Perry Warjiyo, said
As the European economic crisis had shown no sign of abating Bank Indonesia had to prepare various policies to address the crisis particularly its impact on the financial market, he said. "BI will make various adjustments by issuing a combination of policies based on not only inflation forecast but also developments in the European economic crisis by observing developments in exchange rates, interest rates and capital inflows."
His colleagues, Difi A Johansyah who is a BI spokesman, said the world’s economic slowdown is estimated to begin affecting Indonesia’s economic growth in 2012 so that its economic growth would be at a range of between 6.3 percent and 6.7 percent. Difi said that the world’s economic growth is predicted to slow down due to uncertainty in the settlement of sovereign debt and fiscal problems in Europe and the US.
In 2013 however the country’s economy is predicted to grow between 6.4 percent and 6.8 percent in line with improving world economic conditions, he said when explaining the results of a BI board of governors’ meeting.
As to BI’s projection on the country’s economic growth, BI Governor Darmin Nasution shared Difi’s prediction, saying it was expected to be at between 6.3 percent and 6.7 percent or slightly lower than that in 2011. This was due to the slowing down of the global economy.
In order to maintain national economic growth momentum, the bases of the domestic economic growth should be further reinforced, he said. The central bank governor said that the lowering of BI’s benchmark rate to 6 percent in October would revive domestic financing sources, particularly banks.
Darmin said that with the prediction of economic growth about 6.3 percent - 6.7 percent, BI estimated the need for minimal financing at Rp598 trillion or equal to the growth rate of credits at 26.9 percent. "Next year, credit growth is expected to reach 24 - 25 percent."
According to the BI governor, investment which in 2011 recorded a growth of 7.7 percent, was expected to experience an increased growth of about 9.7 percent - 10.1 percent in 2012 which in turn would maintain the people’s purchasing power. It would also be able to maintain household consumption level at 4.7 percent - 5.1 percent.
In the meantime, the Asian Development Bank (ADB) has also revised down its prediction of Indonesia’s economic growth in 2012 from 6.8 percent to 6.5 percent. However, if the European crisis continued to worsen, the ADB predicted Indonesia’s economic growth at 6.3 percent. This projection rate is similar to that of the World Bank which also put its prediction of Indonesia’s economic growth in 2012 at 6.3 percent.
Even it could be lower than that (6.3 percent) if the crisis falls into a deep recession. "If the euro zone and the United States still fall into a deep recession the ADB predicts the Indonesian economic growth will drop further by 1.0 percent to 5.5 percent," Head of the ADB Regional Economic Integration Office Iwan Jaya Aziz said in a latest Asian Economic Monitor report released this week.
The low economic prediction was also made by Bank Mandiri chief economist Destry Damayanti, who said that the Indonesian economic growth next year would decline from the government’s target of 6.7 percent to stay at a level of 6.2 percent in 2012.
To maintain high economic growth the government should increase public income, keep down inflation to increase the people’s purchasing power, create more jobs to reduce unemployment rate and ensure the supply of goods, she said.
Optimism was voiced by legislator Kemal Aziz Stamboel of Commission XI of the House of Representatives (DPR) on financial affairs. He stated that although the world economic crisis and recession were deepening at an increasingly worrying pace, Indonesia would still be able to achieve its economic growth targets both in 2011 and 2012.
"Indonesia still has domestic driven sources to achieve its economic targets. Besides its domestic-driven economy, Indonesia’s domestic consumption, investment and effective fiscal policy will also drive Indonesia’s economy to achieve its growth targets," Kemal Aziz Stamboel said.
Though he said the government would still be able to achieve its growth targets, yet he did not mention any figures. In the 2011 and 2012 state budgets economic growth was respectively set at 6.5 percent and 6.7 percent.
"Various projections are based on a number of assumptions from worsening global crisis which is believed to have impact on Indonesia, such as the slowing down of exports and the tightening of the liquidity sector," the legislator said.
So, he said, if these problems could be anticipated as early as possible with proper polices, the projections could be on the other way around.
"Therefore, the government should design a policy to encourage exports with diversified markets and product innovation, boost investment and maintain a stable liquidity sector," the legislator said.
Optimism was voiced by legislator Kemal Aziz Stamboel of Commission XI of the House of Representatives (DPR) on financial affairs. He stated that although the world economic crisis and recession were deepening at an increasingly worrying pace, Indonesia would still be able to achieve its economic growth targets both in 2011 and 2012.
"Indonesia still has domestic driven sources to achieve its economic targets. Besides its domestic-driven economy, Indonesia’s domestic consumption, investment and effective fiscal policy will also drive Indonesia’s economy to achieve its growth targets," Kemal Aziz Stamboel said.
Though he said the government would still be able to achieve its growth targets, yet he did not mention any figures. In the 2011 and 2012 state budgets economic growth was respectively set at 6.5 percent and 6.7 percent.
"Various projections are based on a number of assumptions from worsening global crisis which is believed to have impact on Indonesia, such as the slowing down of exports and the tightening of the liquidity sector," the legislator said.
So, he said, if these problems could be anticipated as early as possible with proper polices, the projections could be on the other way around.
"Therefore, the government should design a policy to encourage exports with diversified markets and product innovation, boost investment and maintain a stable liquidity sector," the legislator said.
· "BI will make various adjustments by issuing a combination of policies based on not only inflation forecast but also developments in the European economic crisis by observing developments in exchange rates, interest rates and capital inflows."
"BI akan melakukan penyesuaian dengan mengeluarkan berbagai kombinasi kebijakan berdasarkan tidak hanya perkiraan inflasi tetapi juga perkembangan krisis ekonomi Eropa dengan mengamati perkembangan nilai tukar, suku bunga dan arus modal masuk."
· He stated that although the world economic crisis and recession were deepening at an increasingly worrying pace, Indonesia would still be able to achieve its economic growth targets both in 2011 and 2012.
Dia menyatakan bahwa meskipun krisis ekonomi dunia dan resesi yang mendalam dengan kecepatan yang semakin mengkhawatirkan, Indonesia masih akan mampu mencapai target pertumbuhan ekonominya baik tahun 2011 dan 2012.