PLN denies giving contract to PT Enico<\/p>\n
JAKARTA (JP): State electricity company PT Perusahaan Listrik
\nNegara (PLN) insisted on Wednesday that it would not compensate a
\nlocal service company for the losses caused by the breach of a
\ncoal waste cleaning contract almost a decade ago.<\/p>\n
PLN said in a statement that it was not responsible for the
\nlosses suffered by PT Enico National Development. Enico obtained
\nthe contract for cleaning coal waste at the coal-fired power
\nplant in Suralaya, West Java, from another party rather than PLN.<\/p>\n
The service company received the contract in 1989 from the
\nJakarta and West Java Thermal Power Projects committee which was
\nformed by the Ministry of Mines and Energy and funded by the
\ngovernment, PLN said.<\/p>\n
The committee later annulled the contract due to Enico's poor
\nperformance, PLN added.<\/p>\n
PLN said it could not be held responsible for the action taken
\nby the committee despite the fact that the Suralaya power plant
\nbelonged to the state company.<\/p>\n
\"PLN has never made any kind of legal connection\/contract with
\nEnico for the coal waste disposal work,\" PLN said.<\/p>\n
Enico, insisting that it performed the job well and in
\naccordance with the contract, filed suit against PLN in 1993 at
\nthe North Jakarta District Courthouse.<\/p>\n
The company was dissatisfied with the court's ruling and
\nappealed to the higher court.<\/p>\n
Enico filed another appeal with the Supreme Court which later
\nruled in favor of Enico for Rp 1 billion.<\/p>\n
Enico asked the Supreme Court to review its decision because
\nit considered the compensation too low.<\/p>\n
The Supreme Court agreed to review the compensation award and
\nultimately ruled to increase it to Rp 2 billion.<\/p>\n
The Supreme Court issued a ruling in the middle of last year
\nordering the North Jakarta District Courthouse to confiscate
\nPLN's bank accounts amounting to Rp 2 billion (about US$250,000)
\nand present the funds to Enico.<\/p>\n
But, the Supreme Court later asked the North Jakarta District
\nCourthouse to cancel giving the money to Enico following a
\ncomplaint by Minister of Mines and Energy Kuntoro Mangkusubroto
\nwho said it was the government rather than PLN which should have
\nbeen held responsible for the project. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-denies-giving-contract-to-pt-enico-1447893297",
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"sponsor": "Okusi Associates",
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