Ginandjar denies Winters' accusation of corruption

Ginandjar denies Winters' accusation of corruption

JAKARTA (JP): One day after being personally embarrassed on a
presidential flight, Coordinating Minister of Economy, Finance
and Industry Ginandjar Kartasasmita angrily denied on Wednesday
he was involved in a corruption scandal with copper and gold
mining giant PT Freeport Indonesia.

Ginandjar demanded American professor Jeffrey A. Winters prove
allegations that during his tenure as minister of mines and
energy from 1988 to 1993, he had taken a bribe in a shares
transaction between the company and PT Bakrie & Brothers.

"I did not make any profit from the sale of Freeport shares to
Bakrie... I did not violate any law, there was no abuse of
power, there was no personal profit," Ginandjar said before
attending a monthly meeting on economic affairs at the Bina Graha
presidential office.

"When Winters spoke, was he in good mental and physical
condition? ...I don't even know him," Ginandjar insisted.

Winters, a professor of political economy at Northwestern
University in Chicago, America, said in a lecture during his
visit here on Monday that Ginandjar should not lead the national
anti-corruption campaign because he was currently facing
allegations of colluding with PT Freeport.

"(What Winters did) was beyond the limit. I think it would be
intolerable in any country," Ginandjar said.

According to press reports in Jan. 1997, 80 percent of the
stake of Freeport Indonesia, which operates a huge gold and
copper mine in Irian Jaya was owned by McMoran Copper and Gold of
the United States. A further 10 percent was owned by the
Indonesian government and the remaining 10 percent by Bakrie
through Indocopper, which bought its stake for $213 million in
Jan. 1992.

In Dec. 1992, Bakrie & Brothers sold 49 percent of its stake
in Indocopper to McMoran for $212 million. This reduced its stake
to 49 percent from 88 percent. The remaining 2 percent is held by
Bakrie group subsidiary Bakrie Investindo.

In 1997, Bakrie sold its stakes to Nusamba Group, which is
controlled by Muhammad "Bob" Hasan, a crony of former president
Soeharto.

"The permit (for the transaction in 1992) was not issued by
the minister of mines and energy but the minister of finance,"
Ginandjar remarked.

Ginandjar accompanied President B.J. Habibie to Batam island
for a meeting with Philippine President Joseph Estrada on Tuesday
evening along with four other Cabinet ministers.

The President and his entourage flew on a special Garuda
flight.

Before the flight back to Jakarta, a Garuda stewardess placed
copies of the Sijori Pos daily on all seats on the plane,
including Ginandjar's.

The newspaper carried Winters' statement on its front page
under the headline: Ginandjar suspected of involvement in
Freeport corruption case alongside a picture of a tense
Ginandjar.

"This is the era of reform," the stewardess replied when
journalists reminded her that the report on Ginandjar might hurt
the senior minister's feelings.

Ginandjar became visibly furious after reading the report.
After the plane took off, Habibie approached Ginandjar.

Minister of Foreign Affairs Ali Alatas, Armed Forces Commander
Gen. Wiranto, and Minister/State Secretary Akbar Tandjung then
joined the hushed conversation.

Wiranto then removed a document from his bag and showed it to
those involved in the conversation.

"The report humiliated Pak Ginandjar," an official said on
Wednesday.

"I have reported the case to the President," Ginandjar said
before Wednesday's cabinet meeting.

Minister of Justice Muladi said police should question Winters
over his remarks. He also said he was ready to bar Winters from
leaving the country.

"The police must investigate him... a coordinating minister
is harassed by a foreigner in Indonesia, that's not on" Muladi
said before attending a cabinet meeting.

Winters has already left Indonesia. (prb)