Appeals against KPPU tanker ruling must be joined<\/p>\n
Leony Aurora, The Jakarta Post\/Jakarta<\/p>\n
Judicial panels at the Central Jakarta District Court have
\ndecided to support a decree by the Supreme Court, saying all
\nappeals against state oil and gas company PT Pertamina's tanker
\nsale ruling must be consolidated into a single file.<\/p>\n
The panels of judges halted all examinations in separate
\nsessions on lawsuits against a controversial Business Competition
\nSupervisory Commission (KPPU) ruling filed by Pertamina,
\nfinancial advisor Goldman Sachs and tender winner Frontline
\nShipping Ltd., held on Thursday.<\/p>\n
Pertamina's and Goldman's appeals had actually reached the
\nclosing stages, a step away from a verdict.<\/p>\n
\"We'll now have to return the case files to the head of the
\nCentral Jakarta District Court to be consolidated into one file
\nwith a new panel of judges,\" said Cicut Sutiarso, who presided
\nover Frontline's case.<\/p>\n
It is unclear whether the new judicial panel will hear the
\nevidence and testimony all over again. \"It is up to the judges,\"
\nsaid Cicut.<\/p>\n
The court decision came a day after the Supreme Court's
\nruling, and sparked mixed responses from the parties involved.<\/p>\n
The plaintiffs protested strongly, saying that it came too
\nlate and that the court proceedings had already reached an
\nadvanced stage. All of the companies challenging the KPPU ruling
\n-- including Frontline's local agent PT Equinox, which filed its
\nappeal in the South Jakarta District Court -- have sent objection
\nletters to the Supreme Court.<\/p>\n
To save time and energy, the lawyers requested that all
\ndocuments and evidence already submitted be included in the
\nconsolidated file and that the new panel of judges could not
\nrepeat the court proceedings that had been conducted earlier.<\/p>\n
The KPPU, however, welcomed the Supreme Court decree, saying
\nthat \"we will stand by the law\". The commission insisted that all
\nproceedings should be done afresh with the new consolidated file.<\/p>\n
The Supreme Court decree, signed on April 13 but received a
\nweek later, was based on Article 4 of Supreme Court Regulation
\nNo. 1\/2003 on appeals against KPPU rulings.<\/p>\n
The article stipulates that if appeals are brought by more
\nthan one business entity before different courts against one KPPU
\nruling, the KPPU can ask the Supreme Court to designate a single
\nDistrict Court to examine all of the appeals.<\/p>\n
The tanker saga started with Pertamina's plan to sell two Very
\nLarge Crude Carriers (VLCCs) last year. Bermuda-based Frontline
\nwas declared winner of the tender with an offer of $184 million.<\/p>\n
After investigating for a few months, KPPU announced in early
\nMarch that the deal was riddled with irregularities.<\/p>\n
KPPU found that in the second round of bidding, another
\ncompany called Essar Shipping Ltd. had earlier bid $183.5
\nmillion. Frontline, through Equinox, raised its offer from $178
\nmillion to the winning bid days later.<\/p>\n
In its defense, Goldman said that Essar was not selected as
\nthe tender winner (despite its higher initial offer) as it could
\nnot provide the required down payment.<\/p>",
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