Court head says Newmont offers US$7 million to annul decision

Head of North Sulawesi high court in Manado OH Simarmata said on Monday gold mining company PT Newmont Minahasa Raya had asked him to overrule the provisional decision of the Tondano District Court to suspend the operation of the gold mining company, offering him US$7 million in fee, Tempo Interaktif reported.

Simarmata denied that he had asked for $30,000 in fee from Newmont .

"The truth is I did not ask for the money. But, Newmont Minahasa Raya offered me US$7 million," Simarmata said, adding the fee was offered in check issued by Bank Internasional.

The Tondano district court has made a provisional ruling to suspend the operation of Newmont despite the fact the court had yet to finalize examining the lawsuit filed by the Minahasa regency against the gold company. The regency sued the company for its refusal to pay the C-class taxes on overburden, which is not included in taxes payable by the company under the contract of work.

The provisional ruling has to be approved by the high court for implementation.

Newmont's manager of government and public relation Tri Harjono denied that Newmont had tried to bribe Simarmata.

"That's not right. Newmont has never conducted business practices in contravention with the United States anti-corruption act. In our environment, anyone who practices corruption and bribery will receive penalty. Newmont dares not to do that," he said.

The news service said the Supreme Court is studying the complaints filed by Newmont and Minister of Mines and Energy Susilo Bambang Yudhoyono over the provisional ruling. The complaint is being examined by head of the Supreme Court's Expert Team SE Simanjuntak., who is also vice secretary general of the court. (*)