Vico denies charges made by East Kalimantan business association

Oil and gas company PT Vico Indonesia denied the charges made by East Kalimantan's Muara Badak Businessmen Association (APMB) that the company had violated the procedure in the selection of its sub contractors, the local Kaltim Post daily reported.

The paper quoted Vico spokesman Hasnan as saying that the selection of the sub contractors had already been in accordance with the existing regulation.

Hasnan was responding to accusations made by APMB earlier that Vico had violated the presidential decree and the ruling of the state-owned oil and gas company on the direct appointment of sub contractors. APMB said that for project worth less than Rp 25 million, the appointment of the sub contractors should be made via Vico office in Jakarta. APMB said that according to the regulation, it was the local Vico official who should make the selection process.

APMB accused Vico of favoring sub contractors from outside the Muara Badak area, which is the base of the company's operation.

The business association also accused Vico of favoring suppliers from outside the area.

Hasnan denied the charges. He said that it was impossible for APMB members to be involved in Vico current projects because the association had just recently been established.(*)