Newmont's partner urged to give its stake to local government
Monday, July 10 2000 - 03:30 AM WIB
The Legislative Council of North Sulawesi province has again demanded PT Tanjung Serapung to hand over its 20 percent stake in PT Newmont Minahasa Raya to the local government for its alleged corruption and nepotism practices in obtaining its mine interest in the past.
Tommy Sagay, the vice chairman of the council, said in Manado on Saturday that Tanjung Serapung, which is owned by Yusuf Merukh, a former member of the House of Representatives (DPR) during the Soharto era, acquired the 20 percent stake in Newmont through illegal practices.
"Yusfu Merukh should, therefore, surrender its stake to the provincial government or face a legal action," Tommy was quoted as saying by Kompas daily. But he stressed that the council's demand would not affect Newmont's gold mining operation in the province.
Roy Maningkas, another vice chairman of the council, said that Newmont might continue its activities as usual because the council's demand only addressed to Yusuf's company, not the other shareholders in the mining firm.
He said that Yusuf, which also partly owns Newmont Nusa Tenggara in West Nusatenggara province (NTB), acquired its stake in Newmont Minahasa due corruption and collusion with senior government officials in the ministry of mines and energy during the former president Soeharto's era.
"The locals therefore deserve to take back their rights in the gold mining company from Yusuf," he added.
Newmont Minahasa Raya, which operates a massive gold mining in the Ratatotok district in Minahasa regency, North Sulawesi, has faced a number of protests from the local residents recently either due to its alleged pollution practices or land conflicts.
Most recent protests were made by residents who claimed themselves as former owners of the mining sites. They demanded the mining company an additional payment for the land acquired by the company during the period between 1989 and 1994.
Newmont Minahasa was also taken to court by the local government for not paying tax several months ago but the legal suit was dropped after the company agreed to pay the tax. (*)