KPK summons commissioner over corruption at Pertamina

The Corruption Eradication Commission (KPK) has summoned Sahala Lumbangaol, a commissioner of state owned oil and gas firm PT Petamina, as a witness to alleged corruption committed by a former director of the state firm, state news agency Antara reported on Monday.

Sahala, who is also an expert staff at the Ministry of State Enterprises, will be probed in a bribery case related to the purchasing by Pertamina of tetraethyl lead (TEL) in 2004-2005. The case is commonly known as ?Innospec Case?.

?Sahala will be probed as a witness to SAM (Suroso Atmomartoyo),? KPK Head of Reporting and Publication Division Priharsa Nugraha said.

Suroso, who was Pertamina?s refinery director when the crime took place, allegedly accepted bribes amounting to US$190,000 from PT Sugih Interjaya?s Director Willy Sebastian LIem in return for his help in pushing Pertamina to import TEL from multinational chemical firm Associated Octel Company Limited (OCTEL) or Innospec Inc. Willy paid the travel cost of Suroso to London and Innospec?s executive David P Turner covered Suroso?s hotel costs worth 749.66 pounds during his stay at May Fair Radisson Ewardian hotel from April 23-26, 2005 and 149.5 pounds during his stay at Manchester UK on April 27, 2005.

Sugih had been the sole distributor of Innospec?s products in Indonesia since 1982 and was entitled to commission from the sale of TEL from 2003 through September 2004. The agreed sales price for the TEL product was 9,975 per ton.

Sugih and Innospec however faced a stumbling block in their efforts to sell their products: The Government of Indonesia launched the so-called Blue Sky program, an environmental program aimed at ending the use of leaded gasoline and diesel. Under the program, which took effect on Dec. 31, 2004, Pertamina was given until the middle of 2005 to stop the production of leaded gasoline and diesel and replace them with unleaded (TEL-free) products

To solve the problem, Willy then implemented a strategy to delay the issuance of the joint ministerial decree on the Blue Sky program by the Ministry of Energy and Mineral Resources, Ministry of Environment and the Ministry of Finance. Meanwhile, Suroso was encouraged to approve the TEL import with a promise he would get a commission of $500 per ton. Suroso then recommended the import to Pertamina?s board.

The commission was transferred to Suroso?s bank account at UOB Bank in Singapore, totaling $190,000 from Jan.18, 204 through Sept. 19, 2005.

The British court ruled the Ellesmere Port, England-based firm guilty on Aug. 5, 2010, slapping it with a $12.7 million fine. The U.S. Securities and Commission (the firm is listed on the Nasdaq) has also declared the firm guilty of bribing Indonesian official. (*)