Ginandjar to meet Marzuki over alleged corruption

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)