Sugiharto urges tighter control on Pertamina's oil imports

State Minister for State Owned Enterprises Sugiharto urged the commissioners of Pertamina to take a tighter control on the state-owned oil and gas company's crude oil imports, Koran Tempo reported on Thursday.

"The commissioners should be able to control the company's day to day activities including its oil import policy," he said when he was asked about the government's action against the alleged fraud in the bidding of Pertamina's crude oil imports.

A press report unveiled on Wednesday an indication of frauds in the procurement of Pertamina's crude oil for April. The alleged frauds, which took place during the process of the tender, could inflict financial loss to the state to about Rp 9.18 billion. The tender was held in February.

Sugiharto refused to further comment on the alleged fraud, saying that he had not received any reports about the alleged fraud. " I have not yet studied the case," the minister added.

Meanwhile Suroso Atmomartoyo, the director of Pertamina's oil processing department, denied the fraud allegation. According to him, the tender for the procurement of the crude oil was carried out according to the standard procedures. "All the process had been carried out transparently," he added. (*)