House?s special committee finds new KKN cases in Pertamina

House of Representatives (DPR) special committee which is currently investigating alleged corruption practices in Pertamina?s Exor I Balongan, Java pipelines and Technical Assistance Contract (TAC) projects has reported its new findings on alleged KKN, the local acronym for corruption, collusion and nepotism practices on the state owned oil and gas company?s another three projects.

Kompas reported on Friday that the three new findings included alleged KKN practices in Tugu Pratama Indonesia (TPI) insurance company, the Seamless Pipeline project and Trans Javagas Pipeline linking Kangean gas field in Madura and Gresik in East Java,

The chairman of the House?s special committee on Pertamina, Emir Moeis, said in Jakarta on Thursday that the KKN practices taking place in TPI had caused massive financial losses to the state owned oil and gas company.

According to him, TPI which was owned jointly by Pertamina and businessman Muhammad Bob Hasan was obliged to carry out business partnership with London-based Tugu Reasuransi Broker (TRB), which was owned by former Pertamina president Faisal Abda?oe, Bob Hasan, Sony Dwi Harsono and Rizaluddin Sunjaya.

The insurance brokerage company which acted as Pertamina?s consultant reaped commission worth millions of U.S. dollar from Pertamina. The commission was paid to YHT and Company Limited which was based in Le Merchant Street, St Peter Port, Guernsay, a small island located between France and England. The money transferred to the company between 1992 and 1997 reached a total of US$70 million.

This cases had been undetected before and it had never been also reported to the Attorney General.

Emir said that the other new findings also include alleged corruption practices in the construction of Seamless Pipe Project linking by PT Seamless Pipe Indonesia. The alleged KKN practices in this project had been reported to the Attorney General but the case had mysteriously disappeared. Pertamina was forced to pay US$30 million for the failed project.

Another new finding was related to Trans Javagas Project which would build a gas pipeline linking the Kangean gas field in Madura to Gresik, East Java. The construction of the pipeline should be carried out by gas field operator ARBNI but due to intervention of former president B.J. Habibie, the obligation to build the pipeline was transferred to Pertamina which had to spend about US$420 million for the project.

This case had been reported to Attorney General but the later found no signs of criminal acts in the project. (*)