KPC denies corruption allegation
Tuesday, July 24 2001 - 02:05 AM WIB
KPC president Grant Thorne said on Monday that his company would never tolerate corrupt practices, and that all transactions made by the company were audited by internal and external auditors.
?There?s not corrupt practices in KPC,? Thorne was quoted by the local Radar Kaltim daily.
He was speaking during a gathering with some members of the East Kutai legislative council. President of PT Rio Tinto Indonesia Noke Kiroyan also attended the meeting. The legislative council was led by its Speaker Abdal Nanang.
KPC is equally owned by Rio Tinto and BP.
The East Kalimantan administration had reported KPC both to the Attorney General?s Office and the National Police in Jakarta over alleged corruption. The administration particularly pointed out that while KPC had claimed it started production and export in 1992, the company was in fact already making export in 1987.
Thorne said that the export made in 1987 had already been reported to the authority and it was in line with the existing regulation. He said that it was only meant to provide samples to overseas buyers.
?There?s nothing secret about it,? he said.
Meanwhile, KPC general manager Irawan Purwo said that the company exported around 112,000 tons of coal. He said that that this was only free samples for the overseas market which was in line with the mining contract signed with the government.
Reports have said that the East Kalimantan administration had filed the indictment against KPC amid suspicion that the company was trying to continue to delay its obligation to divest 51 percent stake to the local government.
But Kiroyan said that the KPC was not trying to make delays. He said that the company and the East Kalimantan administration had not reached agreement on the divestment price.
Radar Kaltim said that KPC has demanded US$448.8 million for the 51 percent shares, while East Kalimantan only wanted to pay $319.08 million.
Kiroyan said that the local government had rejected KPC?s proposal to appoint an independent appraisal to value the shares.(*)