AGO to question ministry's officials over Balongan case
Friday, June 1 2001 - 07:00 AM WIB
Attorney General Marzuki Darusman met with Minister of Energy and Mineral Resources Purnomo Yusgiantoro on Thursday at the latter's office to get approval to question officials at the energy ministry over alleged marked-up practices in the Balongan refinery project.
Marzuki said his office received two more corruption cases over the Balongan project, and would pursue those cases quickly as part of President Abdurrahman Wahid's accountability before the special session of the People's Consultative Assembly (MPR), slated to be held early August.
When asked if the corruption cases over Balongan involved former energy minister Ginandjar Kartasasmita, Marzuki responded: "Yes...yes...yes." But shortly after that, Marzuki gave contradictory answer, "No...No..No."
Speaking to reporters after meeting with Marzuki, Purnomo confirmed that Marzuki came to his office to ask his approval to question his men. "But it is not ethical to reveal who will be questioned."
Purnomo said the cases investigated by the Attorney General's Office this time involved more officials than the previous cases, and the legal processing against them would be expedited due to the planned special session of the MPR to demand the President's accountability.
The Balongan case revolves around the development of the export oriented refinery (exor) project, funded by the British government. The idea of the project started when then British prime minister Margaret Thatcher offered Indonesia an export oriented refinery project during her visit to Jakarta in 1985. The offer was followed up by state oil and gas company Pertamina and British investor Foster Wheeler.
In their initial agreement, Pertamina agreed to cooperate with Foster Wheeler as the leader of consortium and contractor for the engineering, procurement and construction of the project, while British Petroleum would act as off-taker of the project's fuel products.
The project then commenced with total investment of US$938.6 million, including $60 million of grant given by the British government and $140 million of soft loan from Export Credit Guarantee Department. The remaining $738 million was funded by a syndication of international banks.
But later, the value of the projects expanded to over $2 billion. But still the value of marked-up is being debated. (*)