Indonesia may investigate claims Freeport paid off security forces

Attorney General Abdul Rahman Saleh said Wednesday he would look into allegations that a U.S. goldmining giant illegally paid US$20 million to security forces before deciding whether to launch a graft probe, The Jakarta Post reported on Thursday.

The New Orleans-based company Freeport-McMoRan Co. has denied breaking any laws, saying it has been transparent about providing logistical support to Indonesian troops near its mine in the remote province of West Papua.

But the government has said such payments are illegal.

When asked about a possible graft investigation against Freeport-McMoRan, Rahman said: "I have to learn first what's happening (in Papua)."

The New York Times reported last month that Freeport paid nearly US$20 million to military and police officials in Papua between 1998 to 2004.

Such payments are seen as encouraging corruption among military commanders, and jeopardize government efforts to bring the powerful military brass - who are still allowed to operate largely independently of the defense ministry's supervision - under civilian control. (*)