Indonesian Political, Business & Finance News

Ginandjar testifies in Pertamina corruption case

| Source: JP
Ginandjar testifies in Pertamina corruption case

JAKARTA (JP): Former minister of mines and energy Ginandjar
Kartasasmita was questioned at the Attorney General's Office on
Tuesday as a witness in a corruption case involving state-owned
oil and gas company Pertamina and PT Ustraindo Petro Gas.

During the questioning, which lasted seven hours, Ginandjar
answered 26 questions from a joint team comprising military
prosecutors Comr. Subandi Parto, Col. Sonson Basar, Col. Salamun
and Col. Darya Iskandar, and Barman Zahir, Fachmi, Yan Mere and
Nawir Anas from the Attorney General's Office.

Ginandjar answered questions about his successor Ida Bagus
Sudjana, former Pertamina president Faisal Abda'oe and PT
Ustraindo director Praptono H. Upojo, who have been named
suspects in the corruption case, which allegedly resulted in
$24.8 million in state losses.

As a retired Air Force vice marshal, Ginandjar was accompanied
at the questioning by three officers from the Indonesian Military
Legal Aid Body, as well as his civilian lawyers O.C. Kaligis,
Muhammad Assegaf and Muchyar Yara.

"I only received the summons on Friday night. I decided to
come in as a show of good will. I want this case to be completed
soon," Ginandjar said before entering the Attorney General's
Office.

During the lunch break, Assegaf told journalists the questions
centered on Ginandjar's knowledge of the corruption case, which
allegedly occurred during his term as minister and Pertamina
chief commissioner.

The questioning ended at 5 p.m. and will be continued on
Wednesday.

There is still no official word if and when Ginandjar will be
questioned as a suspect in the case.

Kaligis said the questioning went forward only after
Indonesian Military Commander Adm. Widodo A.S. gave his approval.

"This was in agreement with Article 9 of Law No. 31/1997,
because when the case occurred Ginandjar was an active military
officer," Kaligis said, referring to the law on military
tribunals.

Ginandjar's appearance at the Attorney General's Office was
marked by an ugly incident, with the former minister's bodyguards
insulting and pushing back journalists. In response, several
journalists chased after the bodyguards and struck their car.

In a written statement on Tuesday evening, Ginandjar
apologized for the incident.

According to an investigation by the Attorney General's
Office, deals signed by Pertamina and PT Ustraindo violated
regulations on technical assistance contracts because they
covered oil fields that were still productive.

The investigation also showed that while regulations required
PT Ustraindo to pay for the development of the contract areas, it
was Pertamina that bore the costs of development, causing $18
million in losses to the state.

The contracts with PT Ustraindo covered oil fields in Bunyu,
East Kalimantan, Prabumulih and Pendopo in South Sumatra, and
Jatibarang on the north coast of West Java.

In February and March 1995, Sudjana allegedly approved
amendments to the contracts with PT Ustraindo, resulting in the
government receiving a smaller percentage of the oil from these
fields, causing $6.8 million in losses to the state.(hdn)
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