Wed, 04 Nov 1998

Freeport's Moffett due here soon

JAKARTA (JP): Freeport McMoRan Copper & Gold Inc.'s chairman James "Jimbob" Moffett will arrive in the next couple of days to answer to alleged corruption and collusion involving the firm's Indonesian subsidiary, Attorney General Andi M. Ghalib said on Tuesday.

The American government has expressed its willingness to help in straightening out the controversy enveloping PT Freeport Indonesia's mining contract of work (COW) in Irian Jaya, Ghalib told reporters after a meeting with U.S. Ambassador Stapleton Roy.

Separately on Tuesday, lawyer T. Mulya Lubis notified Col. Edi Darnadi, director of the National Police detective unit for general crimes, that American scholar Jeffrey A. Winters was willing to shed light on the issue provided he was not subject to restrictions on entering and leaving the country.

Winters, who ignited the furor in October during a public debate, is registered as a speakers at the Indonesian Forum's two-day economic conference here on Nov. 19 and Nov. 20.

Citing findings of local research group Econit, Winters alleged the involvement of Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita in shady deals between Freeport and several Indonesian businessmen in 1991. Ginandjar was mines and energy minister at the time.

The deals, including Bakrie Brothers' purchase of a 10 percent stake in Freeport Indonesia, were made before the renewal of Freeport's operating contract with the Indonesian government in December 1991. Bakrie subsequently sold its stake.

The Attorney General's Office has launched an investigation, questioning businesspeople and officials, including Ginandjar.

Both Bakrie and Ginandjar have denied the allegations.

Freeport Indonesia operates the world's largest copper and gold mine in mineral-rich Irian Jaya.