Funds from COW applicants legal, Adjat says<\/p>\n
JAKARTA (JP): Director General of Mining of the Ministry of
\nMines and Energy Adjat Sudradjat admitted yesterday to accepting
\nmoney from applicants of seventh generation contracts of work
\n(COWs).<\/p>\n
Adjat, however, said the payments were legal and would be used
\nto cover the cost of photocopying the COW documents.<\/p>\n
\"The money was not used and will not be used for any other
\npurpose but for photocopying the COW documents,\" Adjat was quoted
\nby the spokesman for the Ministry of Mines and Energy, Bangun
\nUsman Harahap, as saying.<\/p>\n
Bangun acknowledged that the directorate general of mining
\nhad asked the applicants of the seventh generation COWs for Rp
\n24.97 million (US$9,615) per application but payment was not
\nobligatory.<\/p>\n
Contractors had never been under any obligation to pay the
\nmoney to ensure that their COW applications would be processed
\nsmoothly, he said.<\/p>\n
The Ministry of Mines and Energy last month submitted 164
\nseventh generation COWs for mineral resources exploration to the
\nHouse of Representatives, which assesses them before submitting
\nthem to the President for approval.<\/p>\n
According to media reports, mining companies applying for new
\nmining contracts had been asked to pay Rp 25 million per
\napplication to ensure that House Commission VI, which would
\nexamine the contracts, would not revise them.<\/p>\n
The media reports said members of Commission VI were using the
\nmoney to finance trips to various provinces to collect input from
\nlocal people and local administrations regarding the concessions
\ncovered by the 164 draft COWs.<\/p>\n
According to the existing mining law, the government should
\nconsult with the House over new mining contract applications
\nbefore giving approval.<\/p>\n
However, contractors feared that House members would change
\nthe contents of the contracts to meet growing pressure from the
\npublic that the government should have a stake in mining projects
\nin the country.<\/p>\n
Commission deputy head Lili Asdjudiredja earlier denied
\naccepting the money, saying the House had its own budget to cover
\nits members' field trips to the provinces.<\/p>\n
\"We have never met with any of the mining firms,\" said Lili.<\/p>\n
50 copies<\/p>\n
Adjat said his office had made about 50 copies of every draft
\ncontract and sent them to House members, other related government
\nagencies, provincial governors and regents for examination.<\/p>\n
Each copy, which is about 200 pages, is worth Rp 45,400 and
\ncontains a contractor's profile, terms of contract, colored maps
\nof each concession and other information.<\/p>\n
Adjat said his office would make another 500 copies of the
\nCOWs after they received final approval from the President.<\/p>\n
The 500 copies of COWs would be distributed to various parties
\nincluding the contractors; commission members; all related
\nministers and their law offices, excluding the minister of
\neducation and culture and the minister of religion; various
\noffices of the Investment Coordinating Boards; Bank Indonesia;
\nthe governors, regents and heads of subdistricts where the
\nconcessions areas are located, and others. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/funds-from-cow-applicants-legal-adjat-says-1447893297",
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"sponsor": "Okusi Associates",
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