Govt beaten again in court, this time against logging firm<\/p>\n
JAKARTA (JP): The government has suffered another defeat in
\nthe courts of law -- this time against a private logging company
\nwith which it has formed a partnership, in a dispute over a
\nforestry concession in South Sulawesi.<\/p>\n
An upset Minister of Forestry Djamaloedin Soeryohadikoesoemo
\nvowed he would fight this court battle, however, and is taking
\nthe case to the Supreme Court. The government also plans to
\ncounter-sue the private company, he said.<\/p>\n
"We didn't do anything wrong. Why should we give up?"
\nDjamaloedin said after inducting a number of officials in his
\nministry yesterday.<\/p>\n
The South Sulawesi High Court has ruled in favor of PT. Ryani
\nIndah, an Ujungpandang-based company, which has formed a
\npartnership with the state-owned PT Inhutani I to form PT. Ryani
\nHutani Sipatuo timber firm on a 40:60 equity basis.<\/p>\n
The subsidiary won a 32,000-hectare forestry concession in
\nManingpajo, Wajo regency, South Sulawesi, in 1991.<\/p>\n
As it turned out, however, part of the concession overlapped
\nwith the ranch belonging to a subsidiary of Ministry of
\nAgriculture.<\/p>\n
PT. Ryani then filed a lawsuit against the Minister of
\nForestry, the management of PT. Inhutani I and the head of the
\nSouth Sulawesi forestry office, seeking compensation for the
\nlosses caused by the contract.<\/p>\n
Both the Ujungpandang District Court and the South Sulawesi
\nHigh Court ruled for PT. Ryani, ordering the government pay Rp
\n2.4 billion ($1.1 million) the company had invested in the joint
\nventure plus back interest payments.<\/p>\n
Inhutani itself had invested Rp 1.6 billion in the venture and
\nthe Ministry of Forestry had provided Rp 3.8 billion in loans to
\nfinance the operation of PT. Ryani Hutani Sipatuo.<\/p>\n
Djamaloedin accused the management of PT. Ryani of squandering
\nthe money to buy luxurious cars as well as paying the rent of the
\noffice which is actually belongs to PT. Ryani.<\/p>\n
The ministry is currently preparing a new lawsuit against
\nPT. Ryani for its refusal to allow PT. Inhutani I to inspect the
\nproject and also for embezzling state funds.<\/p>\n
On the overlapping concession, he said the Ministry of
\nForestry and the Ministry of Agriculture have agreed to jointly
\nuse the area.<\/p>\n
"We can grow sengon trees as well as rumput gajah for
\nlivestock in the same area," he said, referring to a kind of
\nlocal tree and wide-leaf grass. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-beaten-again-in-court-this-time-against-logging-firm-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}