Former Pertamina Director: No Element of Mens Rea in LNG Procurement Case
Jakarta (ANTARA) - Hari Karyuliarto, Director of Gas at PT Pertamina (Persero) from 2012 to 2014, claims there is no element of mens rea or malicious intent in the alleged corruption case involving the procurement of liquefied natural gas (LNG).
According to him, the back-to-back scheme and price review or price reassessment under scrutiny do not constitute malicious intent.
“Law enforcement practices from time to time still revolve around state losses and sideline mens rea,” Hari said when met after an expert witness examination hearing at the Corruption Court in Central Jakarta District Court on Thursday.
The back-to-back scheme is a banking loan or financing product where the collateral is liquid assets, typically customer deposits or savings that are blocked by the bank.
Hari revealed that global LNG business practices do not require a back-to-back scheme for developing business portfolios. This has been confirmed by several parties, including former oil and gas sector officials and Pertamina directors.
In addition, he stated that price review practices have never been the subject of criminal cases in other countries. Price review is a mechanism for adjusting prices in contracts and a procedure for price regulation by regulatory authorities.
According to him, experts from the Financial Audit Board (BPK) have also stated that price review is not a form of malicious intent, but rather a mitigation mechanism to maintain price stability.
“Price review is a zero-sum game, where one party can benefit or be disadvantaged depending on price movements,” he explained.
The case also implicates Yenni Andayani, Vice President of Strategic Planning Business Development in Pertamina’s Gas Directorate from 2012 to 2013, as a defendant.
Both defendants are alleged to have caused state financial losses amounting to US$113.84 million or the equivalent of Rp1.77 trillion due to unlawful acts that enriched Pertamina’s President Director from 2009 to 2014, Galaila Karen Kardinah alias Karen Agustiawan, by Rp1.09 billion and US$104,016, as well as enriching CCL by US$113.84 million.
The unlawful acts committed by the two defendants include Hari allegedly failing to prepare guidelines for the LNG procurement process from international sources and still proceeding with LNG procurement from Cheniere Energy Inc.
Meanwhile, Yenni proposed that Hari sign the Circular Board of Directors Meeting Minutes regarding the decision to sign the LNG Train 1 and Train 2 sales and purchase agreement from CCL without supporting economic studies, risk assessments, and their mitigation in the CCL LNG procurement process, as well as without a CCL LNG buyer bound by an agreement.
Thus, the actions of both defendants are regulated and punishable under Article 2 paragraph (1) or Article 3 of Law No. 31 of 1999 on the Eradication of Criminal Acts of Corruption as amended and supplemented by Law No. 20 of 2001 in conjunction with Article 55 paragraph (1) first of the Criminal Code in conjunction with Article 64 paragraph (1) of the Criminal Code.