Pertamina will submit new evidence in KBC case
Friday, February 11 2005 - 03:36 AM WIB
State owned oil and gas company Pertamina will soon submit new evidence in its legal fight against PT Karaha Bodas Company (KBC) following the rejection of its appeal by the U.S Supreme Court recently, Investor Daily reported on Friday.
Pertamina’s legal consultant Simson Panjaitan said in Jakarta early this week that the new evidence would include PT KBC’s alleged tax fraud and alleged corruption practices carried out by the company’s shareholders.
Simson said that Pertamina was still waiting for the result of the investigation carried out by the police and the Corruption Eradication Commission on the alleged tax fraud and corruption. “If there are new evidences, will go a head with the legal fight,” he said.
Karaha Bodas sued Pertamina on the behalf of the government through the International Arbitrary Agency for the suspension of its geothermal project in Karaha, West Java in 1997. Pertamina were then asked to pay a compensation of US$261 million but the state-owned oil and gas company refused to settle the payment.
The amount of the compensation payment is believed to swell to US$309 million due to the accumulation of interest from the delay in the payment. (*)