Sugiharto threatens to fire Pertamina chief over performance

State Minister of State Enterprises Sugiharto has warned the president director of state-owned PT Pertamina Widya Purnama over the "poor" performance of the firm under his leadership, the Investor Daily Indonesia newspaper reported in its Thursday edition.

The minister also accused Widya of violating Pertamina?s statutes and thus threatened to fire him.

In a letter dated November 8, 2004 addressed to Pertamina chief, Sugiharto emphasized four points: First, Widya has appointed directors and commissioners for Pertamina?s subsidiaries and joint ventures without prior approval of commissioners and shareholders? meeting. This is in conflict with the company?s statutes.

Second, under Widya's leadership, Pertamina's management failed to achieve the target jointly agreed upon by the mangement and board of commmissioners for the period until October 2004.

Third, the management must follow the company?s statutes and rules and improve performance in line with the targets set in shareholders? meeting.

Fourth, if the Pertamina?s president director fails to implement third point, he could be fired in accordance with the Law No. 19/2003 on State Enterprises.

The paper failed to contact Widya via telephone for comments.(*)