Pertamina unit director suspended over graft allegation
Wednesday, September 8 2004 - 12:30 AM WIB
"I have suspended the director and shall ask the police to investigate the case," Pertamina's president Widya Purnama told reporters on Tuesday, as quoted by Detik online news agency.
Widya refused to name the director, but he said Pertamina would withhold the director's salary pending the completion of the investigation of the case by the police. If the director was proven not guilty, Pertamina would pay him his outstanding salary plus interest.
This is the first corruption case in the state firm that has been revealed by Widya since he took over the reins of the firm less than a month ago. Widya has declared that the "fight against corruption, including the oil mafia", would be one of his priorities.
According to Pertamina finance director Alfred Rohimone, the graft case occurred over a period of several years, starting from 2002. Pertamina was then led by Baihaki Hakim.
The director of PT Pertamina Saving and Investment (PSI) bought a negotiable certificate deposit (NCD) worth Rp 60 billion issued by Bank Swansarindo, which has since been renamed Bank Persyarikatan Indonesia (BPI).
The NCD was later converted into a stake in BPI, before being changed into a deposit with the bank, on which PSI received interest. However, PSI stopped receiving interest in February 2004 and, after an investigation, Pertamina found that the deposit had not been recorded in BPI's books.
Aside from buying the NCD, PSI spent Rp 60 billion on buying a stake in the financially troubled Goro chain of wholesalers, which Widya described as a "stupid" decision.(*)