Ginandjar asserts innocence in Balongan scandal<\/p>\n
JAKARTA (JP): A lawyer claimed on Tuesday that outgoing
\nCoordinating Minister of Economy, Finance and Industry Ginandjar
\nKartasasmita was not involved in the alleged corruption at the
\nBalongan refinery in West Java.<\/p>\n
Lawyer Muchyar Yara of Muchyar Yara & Associates, who
\nrepresented Ginandjar, said his client was not handling the
\nproject when it was prepared from 1989 to 1990, despite the fact
\nhe then served as the mines and energy minister and the chief
\ncommissioner of state oil and gas company Pertamina.<\/p>\n
Under Presidential Decree No. 1\/1988, the project was handled
\nby the then coordinating minister of economy, finance and
\nindustry and development supervision, Radius Prawiro, Muchyar
\nsaid.<\/p>\n
\"Our client was by no means involved in the whole process of
\nthe project, from the beginning to making decisions on it ...
\nbecause under the presidential decree, it was beyond his
\nauthority,\" Muchyar said in a letter sent on Monday to the
\nanticorruption watchdog, Indonesian Corruption Watch (ICW).<\/p>\n
A copy of the letter was made available to The Jakarta Post on
\nTuesday.<\/p>\n
Muchyar said under the decree, all projects worth more than Rp
\n3 billion (about US$350,000) were to be approved by the
\ncoordinating minister of economy, finance and industry and
\ndevelopment supervision.<\/p>\n
The Balongan refinery, located in Indramayu, was built from
\n1990 to 1995 by British firm Foster Wheeler at the cost of $1.813
\nbillion. It has the processing capacity of 125,000 barrels of oil
\nper day.<\/p>\n
ICW sent a letter on Thursday to President BJ Habibie
\nquestioning him about a follow-up to the investigation into the
\nalleged graft at the refinery.<\/p>\n
ICW's chairman Teten Masduki said the Attorney General's
\nOffice found evidence that the cost of the project was marked up
\nby $113 million.<\/p>\n
Former attorney general Muhammad Ghalib also reported the
\npeople responsible for the alleged corruption to the President,
\nbut no legal action was taken against the suspects, ICW said.<\/p>\n
Ghalib said in his letter to the President dated May 21, 1999,
\nthat there were indications former Pertamina president Faisal
\nAbda'oe and former Pertamina processing director Tabrani Ismail
\nwere implicated in the alleged graft.<\/p>\n
He also said former mines and energy ministers Soebroto and
\nGinandjar, as well as former Pertamina president AR Ramly, should
\nalso be questioned over their knowledge or possible involvement
\nin the case.<\/p>\n
Ghalib said the idea for the project originated from former
\nBritish prime minister Margaret Thatcher during her 1998 visit to
\nJakarta.<\/p>\n
Thatcher offered a $60 million grant from the British
\ngovernment for the project.<\/p>\n
Then Pertamina president AR Ramly, as well as then minister of
\nmines and energy Soebroto, approved the project. They appointed
\nFoster Wheeler as the contractor, British Petroleum as the
\nofftaker of the refinery products and Japan's Mitsui as the
\nfinancier.<\/p>\n
Ghalib said during the price negotiation from 1989 to 1991,
\nPertamina's team of negotiators, led by Tabrani, accepted a
\nmarked-up price set by Foster Wheeler under pressure from former
\npresident Soeharto's son, Sigit Hardjodjudanto, and his relatives
\nErry Oudang and Bing Cintamani.<\/p>\n
Ghalib said Sigit and his relatives, who always accompanied
\nFoster Wheeler during the negotiation, told Tabrani the price set
\nby the company was approved by Soeharto.<\/p>\n
Local media said Sigit and his relatives got a commission from
\nFoster Wheeler for the service.<\/p>\n
Faisal awarded the contract to Foster Wheeler in April 1990.<\/p>\n
Ginandjar, who took over from Soebroto in April 1988,
\nconfirmed that the idea for the project originated from Thatcher
\nand the project was approved by Soebroto in March 1988.<\/p>\n
Muchyar said Ginandjar sent a letter to Faisal in Aug. 1989
\nordering him to directly report the result of the price
\nnegotiation to coordinating minister of economy, finance and
\nindustry and development supervision in line with the existing
\nregulation. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ginandjar-asserts-innocence-in-balongan-scandal-1447893297",
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