Tue, 20 May 1997

Bre-X workers questioned

JAKARTA (JP): Police have questioned 12 Bre-X Ltd. employees as witnesses in the case of alleged swindle at the Busang gold mine in East Kalimantan, Antara reported yesterday.

One of the employees, M. Ichsan Solichin, 20, told reporters yesterday that he was summoned by the Samarinda police detective chief Capt. Iswahyudi.

In the summons letter, dated May 14, Iswahyudi said Solichin, a company driver, would be questioned as a "witness in the alleged swindle case, deviation and the abuse of procedure" at the Busang gold mine.

"I don't know what questions the police will ask, but my friends are being questioned now," he said before the questioning at the police station in Samarinda.

The twelve workers included John Yohanes (liaison officer), Fujiyanto (mapping), Imut and Tugirin (logistics), Hupbi and Sumardi (security guards). Most of them worked at the Samarinda office.

The police questioning was apparently not related to the workers' kidnapping of Bre-X officials. Police refused to comment.

Workers at the company's Busang gold mine in Muara Ancalong are still holding the local head of administration and personnel, Idris, and surveyor Agus Tripadi hostage. Two Filipino geologists, Boby Ramirez and Manny Puspos, have also been taken hostage.

Police denied the kidnapping report, saying workers asked them not to leave the location as they feared no one could help them settle their rights.

Canada's Bre-X Minerals Ltd announced last week it had earmarked US$600,000 to pay the 488 workers it planned to lay-off after the Indonesian government's decision to freeze all operations by Bre-X and its subsidiaries here.

Tenggarong military district commander Lt. Col. Soekarno said Sunday the two geologists were at the Balikpapan police station.

Police said Saturday at least 375 workers were still waiting for Bre-X officials to decide their fate in mid-May, but added they had received their salary in May.

Bre-X financial director Bernhard Leod said Bre-X planned to sell all its assets in Kalimantan, North Sulawesi, Jakarta and Aceh to meet financial obligations including severance pay for its employees.

But Ichsan said he did not receive his Rp 400,000 salary in May.

"We were told that our severance pay would be paid before the May 29 general election," said Ichsan. He said he still had no plan to find a new job. (06)