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Ahok Testifies in Pertamina Crude Oil Corruption Trial Today

| Source: CNN_ID Translated from Indonesian | Legal
Ahok Testifies in Pertamina Crude Oil Corruption Trial Today
Image: CNN_ID

Basuki Tjahaja Purnama, commonly known as Ahok, attended the continuation of the Pertamina LNG corruption case hearing at the Central Jakarta Corruption Court (Tipikor) with defendants Hari Karyuliarto and Yenni Andayani, appearing as a witness.

According to monitoring by CNNIndonesia.com, Ahok arrived at the Central Jakarta Corruption Court at approximately 09:50 Western Indonesian Time (WIB), dressed in batik and black trousers.

Regarding his preparation for the testimony, he stated he would present facts in response to the questions posed to him. “Let’s wait and see, I’ll just answer the questions. When asked, I’ll answer. Just the facts,” Ahok said at the Central Jakarta Corruption Court on Monday 2 March. “Let’s wait, the court session will ask questions. It can be recorded,” he added.

Previously, Hari Karyuliarto, who served as Director of Gas at PT Pertamina from 2012 to 2014, and Yenni Andayani, who served as Senior Vice President (SVP) of Gas & Power at PT Pertamina from 2013 to 2014, were charged with causing state losses amounting to US$113,839,186.60 in this case.

The defendants are accused of the following acts:

Hari is alleged to have failed to establish guidelines for the LNG procurement process from Cheniere Energy Inc.; approved the Corpus Christi Liquefaction Term Sheet, which included a pricing formula without considering prices acceptable to potential domestic buyers; requested directors’ circular approval prior to signing the Corpus Christi Liquefaction Train 1 LNG Purchase Agreement without proposing to the directors for written response and General Meeting of Shareholders (RUPS) approval.

He is also accused of approving the signing of the Corpus Christi Liquefaction Train 1 LNG Purchase Agreement without a binding LNG buyer; failing to prepare and attach an economic study, risk assessment and mitigation measures; and failing to attach a draft Sales and Purchase Agreement (SPA) in the memorandum requesting directors’ approval regarding the decision to sign the Corpus Christi Liquefaction Train 1 LNG Purchase Agreement.

Hari allegedly held discussions with Cheniere Energy Inc. regarding plans to expand the Corpus Christi Liquefaction LNG facility starting in March 2014 based on potential demand rather than on a buyer with a signed agreement. He is further accused of approving a higher pricing formula for Train 2 without risk assessment or economic analysis to ensure the Corpus Christi Liquefaction Train 2 LNG price was competitive compared to LNG prices from domestic or other sources using crude oil pricing.

Hari allegedly proposed to Karen Agustiawan that she sign a power of attorney directed to him to sign the Train 2 LNG SPA without board approval, written responses from the board of commissioners, or RUPS approval, and without a binding Corpus Christi Liquefaction LNG buyer. He is also accused of signing the Train 2 LNG SPA without board approval, written responses from the board of commissioners, or RUPS approval, and without a binding Corpus Christi Liquefaction LNG buyer.

Meanwhile, Yenni is alleged to have proposed to Hari to sign a Circular Board of Directors Minutes (RRD) regarding the decision to sign the Train 1 and Train 2 LNG Purchase Agreement from Corpus Christi Liquefaction without economic analysis, risk and mitigation measures, and without a binding Corpus Christi Liquefaction LNG buyer in the LNG Corpus Christi Liquefaction procurement process.

Yenni allegedly signed the Train 1 LNG Purchase SPA between PT Pertamina and Corpus Christi Liquefaction on 4 December 2013 based on a Power of Attorney from Karen Agustiawan, even though not all Pertamina directors had signed the Board of Directors Minutes (RRD) and without written response from the Pertamina Board of Commissioners or RUPS approval, and without a binding Corpus Christi Liquefaction LNG buyer.

For their actions, Hari and Yenni are charged with violating Article 2 paragraph 1 or Article 3 of the Anti-Corruption Law (UU Tipikor) in conjunction with Article 55 paragraph 1 subsection 1 of the Criminal Code (KUHP) in conjunction with Article 64 paragraph 1 of the KUHP.

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