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)