Balongan suspects set for prosecution

Balongan suspects set for prosecution

JAKARTA: The Attorney General's Office will soon begin
prosecuting two suspects accused of misusing at least US$94.9
million in state funds allocated for the development of the
Balongan oil refinery in Indramayu, West Java.

The office's spokesman, Barman Zahir, said the dossier on
suspect Tabrani Ismail, the former processing director of state
oil company Pertamina, was submitted on Friday.

He added the dossier on the other suspect, businessman Erry
Putraodang, would be filed separately from Tabrani's.

In 1999, Tabrani proposed a $1.813 billion budget for the
project, a calculation provided by a consortium of contractors
led by Foster Wheeler of Britain and Japan's Gasoline
Constructions.

Pertamina estimated that only about $1.6 billion was needed to
fund the project.

"Tabrani failed to submit this second estimate from Pertamina.
The state's losses are estimated to be in the range of $94.9
million and $190.58, if we count other costs related to the
project," Barman said. -- Antara