Freeport chief denies corruption charges<\/p>\n
JAKARTA (JP): The chief executive officer of U.S Freeport
\nMcMoRan Copper and Gold. Inc., James Moffett, denied Thursday
\nallegations of corruption in PT Freeport's Indonesia operation,
\nincluding charges against a senior economic minister.<\/p>\n
\"There's no KKN in Freeport Indonesia,\" James Moffett said at
\nthe Attorney General's office here, using the Indonesian acronym
\nfor \"corruption, collusion and nepotism.\"<\/p>\n
Moffett spoke to reporters after being questioned for more
\nthan eight hours by the office's intelligence section. But he did
\nnot give any details of the questioning.<\/p>\n
In a statement made available to the media, Moffett also
\ninsisted that his visit was at the request of the authorities in
\norder to provide a full disclosure of the details of Freeport's
\nbusiness transactions in Indonesia.<\/p>\n
A furor over Freeport erupted last month over allegations by
\nan American academic Jeffrey A. Winters that Coordinating
\nMinister for Economics, Finance and Industry Ginandjar
\nKartasasmita, had \"personally benefited\" from contracts awarded
\nto Freeport in Indonesia in 1991 while Ginandjar was minister of
\nmines and energy.<\/p>\n
Ginandjar, however, has vehemently denied the charges.<\/p>\n
Moffett told journalists his relationship with Ginandjar
\nstarted when Freeport renegotiated its second contract for gold
\nand copper mines in Irian Jaya in the late 1990s.<\/p>\n
\"Ginandjar and I became friends after we had really negotiated
\nthis transaction...and working with him as a minister of mines,\"
\nMoffett said.<\/p>\n
Responding to stories that Ginandjar regularly flew in
\nFreeport's private aircraft, Moffett said: \"The only time Pak
\n(Mr) Ginandjar has traveled on our plane was when he accompanied
\nus.\"<\/p>\n
The graft allegations swirl around the sales of some 10
\npercent of Freeport shares to the Bakrie Group in 1991.<\/p>\n
Moffet said the sale to the Bakrie Group was made possible
\nbecause it was the only party interested in investing in the mine
\nand \"no one else stepped up to buy.\"<\/p>\n
\"It was very difficult to find someone to buy the 10 percent
\ninterest in the mine...It was very difficult to get someone to
\nspend money in Irian Jaya, one of the remotest places in the
\nworld, especially when you do not know for sure what the outcome
\nof the exploration and development is going to be,\" he said.<\/p>\n
The New Orleans-based Freeport runs one of the world's largest
\ncopper and gold mines in remote Irian Jaya and is Indonesia's
\nlargest taxpayer.<\/p>\n
Winters said he had based his allegations on material provided
\nby an Indonesian research group, Econit.<\/p>\n
The Attorney General's office has already questioned
\nGinandjar, Econit's head Rizal Ramly, and several current and
\nformer Freeport Indonesia executives.<\/p>\n
Winters, according to his lawyers, has said he too is willing
\nto testify if he receives a guarantee that he can freely enter
\nand leave the country.<\/p>\n
He is listed as a speaker at an economic conference here later
\nthis month.<\/p>\n
When asked to comment on criticisms about the distribution of
\nroyalties from his company Moffett said: \"It is not my place to
\ncome to your country and tell you how to distribute the royalty
\nand taxes that we pay, but I am glad that it is being discussed
\nand I hope that a resolution that will satisfy all of the people
\ncan be reached so that you people will believe that the millions
\nof dollars that we are paying in royalties and taxes will be
\nproperly distributed.\"<\/p>\n
Moffett added that his company had already paid the Indonesian
\ngovernment US$1.1 billion in royalties, taxes and dividends under
\nthe second contract between 1992 and 1997. (byg)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/freeport-chief-denies-corruption-charges-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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