Govt to suspend Pertamina's finance director over controversial tanker sale
Saturday, March 5 2005 - 02:00 AM WIB
The Chief Commissioner of Pertamina Martiono Hadianto said in Jakarta on Friday that the state own oil and gas company?s Financial Director Alfred Rohimone would be temporarily suspended from his current job for his involvement in the alleged irregularities in the recent sale of two giant oil tankers belonging to the state-owned oil and gas company.
?Pertamina?s financial director will be suspended soon after we receive explanation from Pertamina?s president director,? Martiono said.
State Minister of State Enterprises Sugiharto said that his office would also take a legal action against those involved in wrongdoings when conducting the sale of the tankers.
Meanwhile Investor Daily reported Saturday that the Singapore-based financial company Goldman Sachs would challenge the Indonesian Business Competition Supervisory Commission?s (KPPU) verdict that the company had been involved in an act of collusion with Pertamina and the buyer of the two tankers.
Goldman Sachs, which acted as a financial advisor in the sale of Pertamina?s oil tankers, said that it would soon appeal against the KPPU decision.
KPPU declared on Thursday Pertamina and three of its business partners guilty of committing collusive practices of the two tankers worth US$ 184 million last year.
The commission said the tanker sale had caused the state to suffer up to $50 million in financial losses as Pertamina sold the very large crude carrier (VLCC) at price lower than the market price at the time.
In its ruling, the KPPU ordered the Pertamina board of directors and board of commissioners to report their wrongdoing to the shareholders meeting as well as suspend the company's director of finance, who played a dominant role in the tender process.
Three Pertamina's partners -- Singapore-based financial advisor Goldman Sachs, PT Equinox, an Indonesian shipping company that serves as a Pertamina agent, and the tender winner, Bermuda-based Frontline Ltd, a shipping company -- were ordered to pay a total of $61.27 billion in fines to the state as well as Rp 180 billion (US$19.4 million) in penalties.
The KPPU also banned Pertamina from doing business with the three until they had paid the fines and penalties. (maya)