Manado High Court denies Newmont's bribery report

Head of the Manado High Court in North Sulawesi OH Simarmata denied the allegation that gold mining company PT Newmont Minahasa Raya had offered him US$70 million in bribe to overrule the ruling issued by the Tondano District Court on the suspension of the company's operation, Manado Post reported.

The allegation that Newmont had offered $70 million in bribe to Simarmata was made by the Manado High Court Eddy Ratulangi.

Spokesman of the Tondano District Court Pomolango quoted on Friday Simarmata as saying that Newmont's offer was a check issued by Bank Indonesia worth $7 million and it was not a bribe but a bail paid by the company that it may continue its gold mining operation in the province despite the suspension order issued by the Tondano District Court.

Pomolango said the bail payment was a common practice in the United States legal system but such a practice is known in the Indonesian legal system.

He said Newmont should have offered the bail to the Tondano District Court before the panel of judges issue the provisional ruling ordering the suspension of the company's gold mining operation.

Pomolango also denied the report that the Supreme Court had stepped in to intervene in the legal process held by the Tondano District Court over the tax dispute between the Minahasa regency and Newmont. (*)