New Pertamina board hit by corruption case
Thursday, January 4 2001 - 04:30 AM WIB
The newly inaugurated board of state oil and gas company Pertamina, was hit yesterday by allegations of corruption, with some of its members accused of involvement in an irregular tender at the giant
Balongan refinery firm in Indramayu, West Java.
Energy and Mineral Resources Minister Purnomo Yusgiantoro told the press after inaugurating the Pertamina Board of Directors here that the government will sack the directors if they are proven guilty by the court of involvement in the cases.
"If the inspector general of the mining and mineral resources ministry, or Pertamina inspectors later uncover evidence that directors are involved in the case, the appointments will be revised," said Purnomo, who chairs the Pertamina Board of Commissioners (DKPP).
But he stressed all of the new officials have passed the 'fit and proper test' carried out by the DKPP.
The Board includes the mining and mineral resources minister, the minister of finance, the coordinating minister of politics, social and security affairs, and head of the National Development Planning Agency (Bappenas).
The directors stand accused of involvement in an irregular tender for catalytic materials used at the refinery. Analysts said that the price of the tender was much higher than the market price.
Pertamina President Director Baihaki Hakim denied the presence of irregularities in the tender, saying that higher-priced catalytic substances were needed so that the refinery process could take place
smoothly.
"Lower-priced catalytic substances can lead to failure in the refinery process. If we use such substances, they could endanger the fuel supply," he said, adding that he has explained the case to the House of Representatives (DPR). The Balongan refinery firm supplies around 75 to 80% of Jakarta's fuel supplies.
Purnomo also denied that the appointment process of the new Pertamina board was held within a very short time, saying that the names of the new executives were selected by four ministers, who are also members of the DKPP.(*)