WVC?s selection to supply HSD violates guidelines

The selection of Singapore-based company WVC (Far East) Ltd. by state oil and gas company PT Pertamina to supply 7.2 million barrels of high speed diesel (HSD) to boost the national oil stock in 2005 was in violation of company rule, the Bisnis Indonesia newspaper reported in its Tuesday edition.

WVC was not qualified to become supplier in accordance with the guidelines mentioned in the decree issued by Pertamina's president director on Oct. 28, 2002 regarding the procurement of crude and refined oil products.

A source told the newspaper that there was a letter dated Sept. 29, 2004 saying WVC?s selection to supply HSD was in violation of Pertamina?s regulation.

"Pertamina should have appointed a national oil and gas company, a giant company or its subsidiary or a joint venture or an affiliation (to supply HSD,? the source said.

Moreover, according to the source, the WVC?s selection raised suspicion because it was just established on August 3, 2004 and it has a company value of S$1.

The newspaper unsuccessfully tried to contact Pertamina?s president director Widya Purnama on Monday. Meanwhile, Pertamina?s director of finance Alfred H. Rohimone said the appointment of WVC was done by president director and deputy president director but not by the board of directors (*)