Pertamina blamed for oil smuggling<\/p>\n
Eva C. Komandjaja, The Jakarta Post, Jakarta<\/p>\n
The government plans to speed up a proposed shake-up of the
\nmanagement of state oil and gas firm PT Pertamina in response to
\nthe failure of the company's internal monitoring system to
\nprevent oil smuggling from an East Kalimantan port, a minister
\nsays.<\/p>\n
"Fuel theft and smuggling activities at Lawe Lawe Port reflect
\nthe management's failure in its internal monitoring system,"
\nState Minister of State Enterprises Sugiharto said on Tuesday.<\/p>\n
"I will review and find out why the monitoring system, set up
\nby the current management, failed."<\/p>\n
Fuel smuggling at Lawe Lawe Port has been in the headlines
\nover the past two weeks after the National Police uncovered the
\ncrime. Police have arrested several low-ranking officials at
\nPertamina and a Singaporean citizen for their alleged involvement
\nin smuggling subsidized fuel products to neighboring countries.<\/p>\n
The smuggling is thought to have caused Rp 8.8 trillion
\n(US$850 million) in state losses.<\/p>\n
Sugiharto said the company's board of directors should be held
\nresponsible for setting up a monitoring system that failed to
\nprevent the crime.<\/p>\n
"They are giving full cooperation to the police in
\ninvestigating the crime. But they should also be held responsible
\nfor failing to prevent the crime from happening," he said, adding
\nthat he had sent a warning letter to the firm's directors.<\/p>\n
Sugiharto said he would speed up a proposal to reshuffle the
\ncompany's management. The proposal will be submitted to a final
\nassessment team, chaired by President Susilo Bambang Yudhoyono,
\nbut he did not give an exact date.<\/p>\n
Rumors have been circulating about possible candidates to take
\nover Pertamina's top post, but Sugiharto would not name a
\npossible replacement for current president Widya Purnama.<\/p>\n
"A shortlist of candidates has not yet been drawn up," he
\nsaid.<\/p>\n
The three rumored candidates are the director general of oil
\nand natural gas at the Ministry of Energy and Mineral Resources,
\nI'in Arifin Takhyar, Pertamina president commissioner Martiono
\nHadianto and the head of the Upstream Oil and Gas Regulatory
\nBody, Tubagus Haryono.<\/p>\n
Separately, National Police spokesman Brig. Gen. Soenarko said
\nthe East Kalimantan Police had arrested 16 more suspects in
\nconnection with the smuggling at Lawe Lawe.<\/p>\n
"Ten of the 16 are Pertamina employees while the rest are
\nship crew members," he said. Soenarko did not elaborate on the
\nnames or positions of the Pertamina employees.<\/p>\n
With these latest arrests, 30 suspects in the smuggling case
\nare being held by the East Kalimantan Police. (006)<\/p>",
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