Minahasa regency dismisses Newmont bribery report

A senior official of the Minahasa regency dismissed on Thursday the allegation that gold mining company had tried to bribe the North Sulawesi's high court to annul the suspension order issued by the Tondano District Court to gold mining company PT Newmont Minahasa Raya, Manado Post reported.

Head of the legal section of the regency's secretary said the regency still believed in the supremacy of law.

"It (the bribery allegation) is only a suspicion. We believe that the supremacy of law should be upheld," said the official. The name of the official was not revealed.

Rumors say Newmont has offered the North Sulawesi' high court US$7 million in bribes to annul the provisional ruling of the Tondano's court ordering the gold company to stop its operation in the regency until the trial of its dispute with the regency administration came to an end.

But, Newmont denied the allegation.

Meanwhile, lawyer Jeffry Pattilima said Newmont had paid the government US$35 million, but none of the fund was distributed to Minahasa.

Newmont had informed Minahasa's regent about the payment during a recent meeting in Jakarta, Jeffry said.

Jeffry, who is a member of the team of lawyers representing Minahasa regency in the lawsuit against Newmont, however did not provide details what the payment was for or whether the payment was related to the regency's demand for the overburden tax.

In a related development, vice speaker of the Minahasa regency's council Tommy Sagay called on the Minahasa regency and Newmont to settle their dispute out of court. (*)