Tue, 12 Dec 2000

Abda'oe questioned over Pertamina scam

JAKARTA (JP): Government investigators questioned on Monday former president of state oil and gas company Pertamina, Faisal Abda'oe, over the alleged irregularities found in several government contracts in the early 1990s, an official said.

Assistant to the Attorney General's Office spokesman, Chuck Suryosumpeno, said Faisal was questioned for four hours as a suspect over three memorandum of understandings (MOUs) which granted technical assistance contracts to privately owned construction firm PT Ustraindo Petro Gas.

"Faisal, who was the decision maker at the time of the contracts, was questioned over his knowledge about the signing of the memorandum of understanding between Pertamina and PT Ustraindo," he told journalists at his office.

"He was also questioned about the unnecessary granting of technical assistance projects in several oil fields to PT Ustraindo, while the oil fields were still productive," he said.

Suryosumpeno said Faisal would again be summoned for questioning but failed to confirm any future dates.

Faisal has been named as a suspect in several projects which had allegedly caused some US$43.753 billion in losses to the state.

Preliminary investigation has found irregularities in a contract to construct an oil pipe installation in Java with PT Trihasra Bimanusa Tunggal and a technical assistance contract to develop several oil fields with PT Ustraindo Petro Gas.

The prosecutors have also named PT Trihasra's director, Rosano Barrack, as a suspect in the case.

Pertamina made agreements in 1992 and 1993 with PT Ustraindo for unnecessary technical assistance in the still productive oil fields in Bunyu, East Kalimantan; and Prabumulih and Pendopo in South Sumatra.

The projects have caused $17.47 million in state losses.

Abda'oe was the Pertamina president from Aug. 19, 1988 to Jan. 6, 1998. Barrack is a business associate of the second son of former president Soeharto, businessman Bambang Trihatmodjo.

A witness to the case, PT Ustraindo's director Praptono H. Tjitrohupojo was also questioned on Monday over the details and the chronology of the technical assistance contracts. (bby)