Jakarta (ANTARA) - Hari Karyuliarto, Director of Gas at PT Pertamina\n(Persero) from 2012 to 2014, claims there is no element of mens rea or\nmalicious intent in the alleged corruption case involving the\nprocurement of liquefied natural gas (LNG).<\/p>\n
According to him, the back-to-back scheme and price review or price\nreassessment under scrutiny do not constitute malicious intent.<\/p>\n
\u201cLaw enforcement practices from time to time still revolve around\nstate losses and sideline mens rea,\u201d Hari said when met after an expert\nwitness examination hearing at the Corruption Court in Central Jakarta\nDistrict Court on Thursday.<\/p>\n
The back-to-back scheme is a banking loan or financing product where\nthe collateral is liquid assets, typically customer deposits or savings\nthat are blocked by the bank.<\/p>\n
Hari revealed that global LNG business practices do not require a\nback-to-back scheme for developing business portfolios. This has been\nconfirmed by several parties, including former oil and gas sector\nofficials and Pertamina directors.<\/p>\n
In addition, he stated that price review practices have never been\nthe subject of criminal cases in other countries. Price review is a\nmechanism for adjusting prices in contracts and a procedure for price\nregulation by regulatory authorities.<\/p>\n
According to him, experts from the Financial Audit Board (BPK) have\nalso stated that price review is not a form of malicious intent, but\nrather a mitigation mechanism to maintain price stability.<\/p>\n
\u201cPrice review is a zero-sum game, where one party can benefit or be\ndisadvantaged depending on price movements,\u201d he explained.<\/p>\n
The case also implicates Yenni Andayani, Vice President of Strategic\nPlanning Business Development in Pertamina\u2019s Gas Directorate from 2012\nto 2013, as a defendant.<\/p>\n
Both defendants are alleged to have caused state financial losses\namounting to US$113.84 million or the equivalent of Rp1.77 trillion due\nto unlawful acts that enriched Pertamina\u2019s President Director from 2009\nto 2014, Galaila Karen Kardinah alias Karen Agustiawan, by Rp1.09\nbillion and US$104,016, as well as enriching CCL by US$113.84\nmillion.<\/p>\n
The unlawful acts committed by the two defendants include Hari\nallegedly failing to prepare guidelines for the LNG procurement process\nfrom international sources and still proceeding with LNG procurement\nfrom Cheniere Energy Inc.<\/p>\n
Meanwhile, Yenni proposed that Hari sign the Circular Board of\nDirectors Meeting Minutes regarding the decision to sign the LNG Train 1\nand Train 2 sales and purchase agreement from CCL without supporting\neconomic studies, risk assessments, and their mitigation in the CCL LNG\nprocurement process, as well as without a CCL LNG buyer bound by an\nagreement.<\/p>\n
Thus, the actions of both defendants are regulated and punishable\nunder Article 2 paragraph (1) or Article 3 of Law No.\u00a031 of 1999 on the\nEradication of Criminal Acts of Corruption as amended and supplemented\nby Law No.\u00a020 of 2001 in conjunction with Article 55 paragraph (1) first\nof the Criminal Code in conjunction with Article 64 paragraph (1) of the\nCriminal Code.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/former-pertamina-director-no-element-of-mens-rea-in-lng-procurement-case-1775152242", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }