Funds from COW applicants legal, Adjat says
Funds from COW applicants legal, Adjat says
JAKARTA (JP): Director General of Mining of the Ministry of
Mines and Energy Adjat Sudradjat admitted yesterday to accepting
money from applicants of seventh generation contracts of work
(COWs).
Adjat, however, said the payments were legal and would be used
to cover the cost of photocopying the COW documents.
"The money was not used and will not be used for any other
purpose but for photocopying the COW documents," Adjat was quoted
by the spokesman for the Ministry of Mines and Energy, Bangun
Usman Harahap, as saying.
Bangun acknowledged that the directorate general of mining
had asked the applicants of the seventh generation COWs for Rp
24.97 million (US$9,615) per application but payment was not
obligatory.
Contractors had never been under any obligation to pay the
money to ensure that their COW applications would be processed
smoothly, he said.
The Ministry of Mines and Energy last month submitted 164
seventh generation COWs for mineral resources exploration to the
House of Representatives, which assesses them before submitting
them to the President for approval.
According to media reports, mining companies applying for new
mining contracts had been asked to pay Rp 25 million per
application to ensure that House Commission VI, which would
examine the contracts, would not revise them.
The media reports said members of Commission VI were using the
money to finance trips to various provinces to collect input from
local people and local administrations regarding the concessions
covered by the 164 draft COWs.
According to the existing mining law, the government should
consult with the House over new mining contract applications
before giving approval.
However, contractors feared that House members would change
the contents of the contracts to meet growing pressure from the
public that the government should have a stake in mining projects
in the country.
Commission deputy head Lili Asdjudiredja earlier denied
accepting the money, saying the House had its own budget to cover
its members' field trips to the provinces.
"We have never met with any of the mining firms," said Lili.
50 copies
Adjat said his office had made about 50 copies of every draft
contract and sent them to House members, other related government
agencies, provincial governors and regents for examination.
Each copy, which is about 200 pages, is worth Rp 45,400 and
contains a contractor's profile, terms of contract, colored maps
of each concession and other information.
Adjat said his office would make another 500 copies of the
COWs after they received final approval from the President.
The 500 copies of COWs would be distributed to various parties
including the contractors; commission members; all related
ministers and their law offices, excluding the minister of
education and culture and the minister of religion; various
offices of the Investment Coordinating Boards; Bank Indonesia;
the governors, regents and heads of subdistricts where the
concessions areas are located, and others. (jsk)