Purnomo denies involvement in KBC corruption case
Friday, December 10 2004 - 01:56 AM WIB
In a press statement issued by the public relations department of the ministry, Purnomo insisted that he was not a director nor a shareholder of PT Sumarah Daya Sakti, the local partner of U.S.-based Karaha Bodas Co. (KBC) in the power project, as earlier reported by a leading news magazine.
Purnomo, who has been retained as the Minister of Energy and Mineral Resources for a second term, explained that his role in the KBC power project was as head of the government's nine-member geothermal team, providing among others policy recommendations for the minister of energy (at the time was held by IB Sudjana) and other upper level government officials to make final decision with regard to the power project. He insisted that he was not in the position to make the final decision.
The authority is currently investigating alleged cost mark-up and collusive practices in the development of the KBC power project.
The investigation comes at a time when state oil and gas company PT Pertamina has been requested by international arbitration to pay hundreds of million dollars of compensation to KBC, which filed the lawsuit after its geothermal power project in West Java was suspended by the government following the late 1990s economic crisis.(*)