On Freeport's violations<\/p>\n
According to recent reports, U.S. Ambassador Robert Gelbard
\nhas complained to President Abdurrahman Wahid about allegations
\nfrom the attorney general and the finance minister of corrupt
\npractices by U.S. companies, PT. Freeport Indonesia in
\nparticular. Ambassador Gelbard said he does not believe the
\nallegations -- as if corruption were like the tooth fairy,
\nsomething one has the option of believing in or not. Then,
\nsounding more like Andi Ghalib than like a statesman, the
\nambassador warned that continuing accusations by Indonesian
\nofficials would lead to the cancellation of U.S. investment in
\nIndonesia. Is Freeport's corruption a figment of Cabinet members'
\nimaginations?<\/p>\n
Corruption takes many forms. But whatever form it takes we can
\nbe sure that no corrupt deed is ever labeled \"corruption\" per se
\nby its perpetrators. If the ambassador is waiting for someone to
\ndo this, he will never know about corporate America's Indonesian
\ncorruption. Many U.S. companies began operations long before
\nthere was a Foreign Corrupt Practices Act (FCPA) to constrain
\ntheir business practices. Corruptive practices ingrained over
\ngenerations of management are not easily eliminated, especially
\nif people will not acknowledge the problem. It is hard to believe
\nthat Freeport has no problems, when other companies acknowledge
\nthe pressures.<\/p>\n
Does the ambassador want to know about corruption? In January
\nin an article in this newspaper, I suggested steps the United
\nStates Embassy might take to encourage companies to report
\ncorruption, collusion and nepotism (KKN). If any steps were
\ntaken, they are being kept a secret. In February, two American
\norganizations cosponsored a forum in Jakarta on corruption and
\nbusiness ethics. The President of Indonesia took the time to
\naddress the gathering, as did the foreign minister, the attorney
\ngeneral and other ministers and directors general; nearly 400
\nbusiness executives were present. The Australian ambassador and
\nother diplomats stayed for most of the day. The U.S. ambassador
\nwas conspicuous for his absence. There may have been a perfectly
\ngood reason that Ambassador Gelbard was not personally available
\non Feb. 17, but was there no other high level embassy
\nrepresentative who could have shown support for Indonesia's
\nefforts against business-related corruption?<\/p>\n
For a leading G-7 country to have missed this event seems
\nalmost criminally negligent. Although the ambassador cries foul
\nwhen an American corporation comes under the spotlight for
\nalleged corruption, neither the U.S. Embassy nor the American
\nChamber of Commerce here has taken much of a lead in assisting
\ncompanies to avoid corrupt and collusive relationships. Where
\ndoes this leave companies like Freeport if they do have unwelcome
\nproblems? It leaves them with nowhere to turn.<\/p>\n
The ambassador asked for proof of corruption. Unless the
\nambassador follows his words with actions, the obvious conclusion
\nis that the words have public relations value only. He has blamed
\npeople's reluctance to discuss problems on the provision of the
\nFCPA that requires the embassy to report violations to the
\nDepartment of Justice.<\/p>\n
There is a time, sometimes even an obligation, for the embassy
\nto threaten disclosure of crimes. But this need not be the first
\ncourse of action; this strategy is sure to have a chilling effect
\non companies' willingness to speak honestly. There are ways for
\nthe ambassador to encourage companies to report problems before
\ntheir reports become self-incriminating. If, that is, the embassy
\nreally wants to know what is going on. Rightly or wrongly,
\nFreeport has a poor public image. It and other American
\nenterprises are not well served by an ambassador whose words of
\ndefense do not ring true.<\/p>\n
DONNA K. WOODWARD<\/p>\n
Medan, North Sumatra<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/on-freeports-violations-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }