Kaltim Prima Coal under close monitoring

Kaltim Prima Coal (CPC) which is now at the center of controversies over its delayed divestment plan is now under the local government?s close monitoring for allegedly reporting less than it produces, Kalimantan Post reported on Tuesday.

Regent of East Kutai regency, Awang Faroek Ishak, said in the regency?s capital Sangatta on Monday that the regency-level administration has assigned stated owned surveyor Sucofindo to audit the coal company?s production activities.

?We have assigned Sucofindo as independent institution to ensure that the audit process will be fair,? the regent said when, together with members of the local legislative council (DPRD) receiving a group of protesters from the alliance of struggling people (Alpera).

In the meeting, Alpera members expressed their dissatisfaction over the delay in the divestment of KPC?s shares.

KPC, one of the country?s major coal producers, is required to sell 51 percent of its shares to local investors as part of its mandatory divestment program. But the divestment program did not run as expected after the local government which intended to buy the 51 percent stake filed a legal suit against the company?s shareholders for allegedly barring it from acquiring the company?s shares.

The divestment, which should have been completed on March 31, has been delayed for another three months. (*)