Citibank in Indonesia

PART III: CAUSES OF PROBLEM

We have identified the key issues face by the Citibank in Indonesia is the embezzlement and money laundering by Malinda Dee and the death of Irzen Okta. There are several causes of problem that made Malinda Dee commit and behave unethically and illegal. Melinda Dee has stealing between 2 million and 4.4 million from clients because she has developed such close relationship with her clients that many of them signed blank transfer slips. 

The case for the death of Irzen Okta is causes when Irzen Okta trying to settle his own debt. He is issuing the bank about the soaring credit card bills that is increases from RP 48 million to RP 100 million which lead to some interrogation that kills Irzen Okta. Irzen Okta has been killed by debt collectors which is commit by one of the Citibank employee and two debt collectors which has been appointed by International Financial Institution.

Other than that, there is a violation code of conduct by Citibank Indonesia branch employee which follow the key principles in its corporate code of conduct, consist of common purpose, ingenuity, leadership and responsible finance. It seems clear that Malinda Dee and Citibank Indonesia is not adhering to this code especially in not adhering the common purpose and responsible finance when Malinda Dee is committed in fraud issues and there is an accusation from shareholders to Citigroup related to the hiding dealings in toxic subprime debt which has been settled by Citigroup in 2011 for $285 million and in 2012, $590 million.

Then, based on code of conduct by Citibank in workplace, Citibank is a Drug-Free Workplace which employee must maintain a healthy and productive work environment. Any misusing controlled substances or being under the influence of illegal drugs which make an employee unfit for duty is prohibited in the workplace or while performing work that is related toduties. Based on the cases, stated that Matt Lelander is an alcoholic person.

Based on all causes stated, Malinda Dee and Citibank Indonesia did not comply with the UN Global Compact’s ten principles which focus on human right, labour, environment and anti- corruption area. For the issue of fraud by Malinda Dee, she has violated the principles 10 in UN Global Compacts which stated that businesses should work against corruption in all its form, including extortion and bribery. From the murder case of Irzen Okta, it shows that the debt collectors and the Citibank employee has violated the human right principle, which stated that businesses must not complicit in human right abuses.