House committee to probe tanker sales<\/p>\n
Leony Aurora, The Jakarta Post, Jakarta<\/p>\n
One year has passed since the controversial sale of two Very
\nLarge Crude Carriers (VLCCs) but state oil and gas firm PT
\nPertamina is still feeling the repercussions, as the House of
\nRepresentatives formed a special committee on Tuesday to look
\ninto the deal.<\/p>\n
Comprising 28 members, the committee was officially
\nestablished during a House plenary session and will begin its
\nwork immediately.<\/p>\n
\"The House has formed the committee to investigate indications
\nof legal violations and policy irregularities,\" said Agusman
\nEffendi, a committee member from the Golkar faction.<\/p>\n
This move comes on the back of an ongoing legal battle between
\nPertamina and its partners in the sale, and the Business
\nCompetition Supervisory Commission (KPPU).<\/p>\n
Included on the special House committee are six members from
\nthe Golkar faction, five from the Indonesian Democratic Party of
\nStruggle (PDI-P) and two from the Prosperous Justice Party (PKS).<\/p>\n
The United Development Party (PPP), Democratic Party (PD),
\nNational Mandate Party (PAN) and the National Awakening Party
\n(PKB) each have three representatives on the committee, while the
\nDemocratic Star Pioneer (BPD), Reform Star Party (PBR) and
\nProsperous Peace Party (PDS) have one each.<\/p>\n
Agusman, who also chairs House Commission VII on energy and
\nmineral resources, said Pertamina's board of directors originally
\ndecided to buy the tankers to strengthen its fleet. Following a
\nshake-up of the board, the new directors turned around and sold
\nthe tankers.<\/p>\n
One element of the sale that has raised questions is
\nPertamina's failure to receive approval from the House for the
\nsale. \"The law requires our approval because the tankers were
\nstate assets,\" said Agusman.<\/p>\n
Article 46 of Law No. 1\/2004 on the state treasury states
\nthat the sale of state assets valued at more than Rp 100 billion
\n(US$10.41 million), except for land and buildings, must be
\napproved by the House.<\/p>\n
Pertamina sold the two VLCCs in June 2004 to Norway's
\nFrontline Shipping Ltd. for $184 million, saying that it needed
\nthe funds to ease cash flow problems. The tankers cost $130
\nmillion to build.<\/p>\n
Ramson Siagian, a committee member from the PDI-P faction,
\nsaid if the team found any legal violations in the deal it would
\nsubmit a report to the Attorney General's Office.<\/p>\n
\"We expect to wrap up the investigation in October,\" he said.<\/p>\n
The KPPU ruled in March that the tender for the sale of the
\ntankers was riddled with irregularities, and fined Frontline
\nShipping, its local agent PT Equinox and the financial adviser on
\nthe deal, Goldman Sachs.<\/p>\n
However, the Central Jakarta District Court overturned the
\nKPPU ruling, saying there were no indications of unfair
\ncompetition in the tanker sale. The KPPU has filed an appeal with
\nthe Supreme Court.<\/p>\n
Commenting on the court's ruling, Agusman said the House
\ncommittee would look into different aspects of the sale.<\/p>",
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