Ginandjar to meet Marzuki over alleged corruption

JAKARTA (JP): Former minister Ginandjar Kartasasmita will meet Attorney General Marzuki Darusman on Monday regarding several dubious deals allegedly made during his ministerial term.

Ginandjar confirmed the planned meeting, adding it was arranged at his request, rather than Marzuki's, in an effort to clear once for all the rumors swirling around him.

"I asked for a meeting with the Attorney General to clarify the public's rumors alleging I was involved in corruption, collusion and nepotistic practices," Ginandjar told The Jakarta Post.

Ginandjar, who served several ministerial posts during the administration of former president Soeharto, has been accused by some legislators and analysts of involvement in corrupt practices allegedly occurring during the extension of the mining contract of PT Freeport Indonesia and during the processing of the power purchase contract for PT Paiton Energy.

Ginandjar served as the mines and energy minister when Freeport's contract was renewed in Dec. 30, 1991 and Paiton's was being processed.

Officials said he was also suspected in alleged corruption during the preparation of the contract for the Balongan giant oil refinery in West Java, owned by state oil and gas company Pertamina.

Marzuki, in a hearing with the House of Representatives Commission VIII for environmental, science and technology affairs, said on Thursday that his office found some indications of corruption involving Ginandjar during the extension of Freeport's contract and the processing of Paiton's contract.

"More data gathering is needed to ascertain the extent to which Ginandjar and other parties were involved," Marzuki said.

Ginandjar, who is currently a member of the People's Consultative Assembly (MPR), said that given the fact the meeting was arranged at his own request, Marzuki did not need to ask for permission from the President.

"The purpose is to make it (the meeting) a purely legal action, free from political interests and problems," Ginandjar said.

Under the existing regulation, presidential approval is necessary for law enforcers to investigate members of the Assembly and the House of Representatives (DPR).

Ginandjar asserted his innocence during the hearing with House Commission VIII prior to the meeting with the commission and Marzuki.

He denied allegations that the extended contract awarded to Freeport in 1991 unfairly brought more benefits to Freeport than the government.

In fact, he said, Freeport's new contract contained fairer clauses, including the company's obligation to divest its shares to Indonesians, promote community development and protect the environment. All the clauses were nonexistent in the first contract awarded to Freeport in 1967.

Freeport, which is majority-owned by American mining giant Freeport McMoRan Copper & Gold, operates a huge copper and gold mine in Irian Jaya.

Ginandjar also dismissed suspicion that he helped pave the way for Aburizal Bakrie to buy a stake in Freeport.

Ginandjar said the transaction was conducted in line with international business practices and was not in contravention of Freeport's contract.

He also said at the request of the Indonesian government, the Federal Bureau of Investigation (FBI) of the United States had conducted an investigation into the deal, but found no evidence of corruption.

In regard to Paiton's case, Ginandjar maintained that Paiton Energy had received its contract through a tight selection process conducted by an Indonesian team and supported by international consultants.

He said the awarding of the contract was by no means linked to the fact that his younger brother, Agus Gurlaya Kartasasmita, had a 0.8 percent stake in PT Batu Hitam Perkasa, which owns 15 percent of the shares in Paiton Energy.

Paiton operates a huge coal-fired power plant in Probolinggo, East Java. Other shareholders of the company are American General Electric and Mission Energy.

Ginandjar acknowledged, however, that during his ministerial term, he helped many native businessmen secure government projects.

"We particularly helped native businessmen without any racial intention. Facts show that native businessmen have weak positions in our economy and that our sense of justice is biased. We always tried to protect native businessmen from injustices," he said.

He noted, however, that many native businessmen who had been supported were by no means his family members or the relatives of the political elite.

Analysts said native businessmen who were "helped" by Ginandjar include Aburizal Bakrie, Arifin Panigoro and Fadel Muhammad. While Ginandjar was posted as minister, they were called "Ginandjar's boys". (jsk)