Bungaran denies receiving bribe from Monsanto
Muninggar Sri Saraswati, The Jakarta Post/Jakarta
Former minister Bungaran Saragih admitted that he had issued a ministerial decree allowing the cultivation of Monsanto's Bollgard cotton in eight regencies in South Sulawesi, but denied suggestions that he had received a bribe from U.S.-based Monsanto for its genetically-modified organism (GMO) crops.
He pointed out that the decree, which was issued in 2001, had actually created financial losses to the company as its shares in the U.S. stock market fell because the decree limited Monsanto to cultivating the GMO crops only in South Sulawesi, banning it from entering other cotton producing areas in the country.
He said that this was seen by stock market investors as a negative signal from the Indonesian government.
"I allowed the cultivation of cotton seeds in limited areas in Indonesia. (But) It was not something expected by Monsanto because I also required annual evaluation of the project," Bungaran said after meeting with the Corruption Eradication Commission (KPK).
The KPK has set up a team to investigate the allegations of graft.
He explained that representatives from Monsanto, its Indonesian affiliate PT Monagro Kimia and Jakarta-based consulting firm Harvest International Indonesia lobbied him to get permits for cultivation of GMO crops in Indonesia.
However, Bungaran denied that he or his wife had been bribed by Monsanto to grant the permits. He challenged the U.S. government to publish the name of Indonesian officials who had been bribed by Monsanto.
Monsanto confessed to the U.S. Department of Justice that it made at least $700,000 in illicit payments to at least 140 current and former Indonesian government officials and their family members from 1997 to 2002.
Monsanto, according to the website of the U.S. Securities and Exchange Commission, hired an investment consulting firm to lobby for legislation and ministerial decrees favorable to GMO crops as it wanted Indonesia to accept it.
The ministry of agriculture, who was led by Bungaran, granted limited approval for farmers in South Sulawesi to grow Bollgard Cotton in February of 2001.
Bungaran claimed that the decree was "a win-win solution" for farmers, non-governmental organizations that oppose GMO crops, academicians as well as the South Sulawesi administration and the provincial council.
"The governor, HZB Palaguna, the South Sulawesi council and the Association of farmers, sent me a letter asking for a permit to cultivate the cotton," he said.
Earlier in the day, former environment minister Sonny Keraf told reporters that he issued a ministerial decree later in 2001 requiring an environmental impact assessment prior to the cultivation of GMO crops in this country.
"The decree was issued after a decree by a joint team of the agriculture ministry, the forestry and plantation ministry, the health ministry and the state ministry of food and horticulture in 1999, which allows possible cultivation of GMO crops here," Sonny said.
Monsanto has agreed to pay a US$1 million penalty to the U.S. Department of Justice to settle charges of bribing Indonesian government officials. It has also agreed to pay another $500,000 to the U.S. Securities and Exchange Commission.
It confessed to the U.S. authorities that it bribed a senior official with the environment ministry $50,000 in a bid to repeal the ministerial decree issued by Sonny, which was deemed not favorable to Monsanto's business here.
Despite the cash payment, the senior official never dropped the environmental impact assessment (AMDAL) requirement for Monsanto's products.