The Bali Times
NIGHTCLUB owner Kadek Wiranatha is facing a civil lawsuit and possible criminal action in Bali over a hotel deal gone sour while his advertising publication the Bali Advertiser hovers near bankruptcy, a law firm said this week.
Edy Kurniawan of Roesmanhadi & Associates in Jakarta, representing PT Mountbatten Resorts International (MRI), said a signed agreement with their client and Wiranatha in 2008 fell through when last September the entrepreneur failed to honour the terms of the deal and permit MRI to operate the then-Contiki hotel on Jl Dyana Pura in Seminyak under an eight-year lease arrangement.
Kadek Wiranatha: Business has soured.
“Wiranatha had been paid US$3.5 million by then but he returned the money,” Kurniawan told The Bali Times.
He alleged that Wiranatha sent 100 men to the now-renamed Breezes Resort and Spa last December and removed MRI managers who had been working on the premises.
“On 19 December 2009, over 100 men working for Mr Kadek entered into the hotel and forcibly evicted three managers working for MRI,” he said.
The law firm called on Wiranatha “to respect the law and not resort to force.”
MRI said it had lodged a civil case at the Denpasar District Court over Wiranatha’s alleged breaking of the lease agreement and filed a report with the police in January for the eviction of its managers that it hopes will result in a criminal charge.
“No one should resort to force to settle any legal dispute when the courts can be relied on to decide on such matters. Such displays of force smack of vigilantism and disrespect for the law. Such actions, if left unchecked, would only harm Bali’s reputation as an investment destination, especially for the hospitality industry,” it said in a statement.
A spokesman for Wiranatha, Oka Semadi, told The Bali Times on Thursday he was not willing to comment on the matter.
The law firm said that Wiranatha is “well known in the travel industry as he owns Bali entertainment landmarks such as Ku De Ta, Bacio, Gado-Gado as well as the financially troubled Bali Advertiser and the now-defunct Air Paradise International.”
Wiranatha has been in the news recently over his plans to build a restaurant and bar on the site of the former Sari Club in Legian that was blown up in an Al-Qaeda-linked attack in 2002, killing 202 people, 88 of them Australians.
The Bali Advertiser, an advertising-led publication catering to Bali’s large expatriate sector, had previously reported financial difficulties, in a memo to clients.