Government asked not to deal with corrupt firms
Government asked not to deal with corrupt firms
JAKARTA (JP): An anticorruption watchdog body has called on
the government not to award new business contracts to
businesspeople charged with corruption, collusion and nepotism
during former president Soeharto's era.
Teten Masduki, an executive of Indonesian Corruption Watch,
said on Tuesday that such a move was necessary to show the
government's commitment to eliminate KKN, the local acronym of
corruption, collusion and nepotism, and in creating sound
business ethics in the future.
"Companies which have been involved in KKN practices are free
to make any business deals with other private companies. But
don't give them government projects any more," Teten said.
Bank Indonesia (the central bank) is the only institution in
the country, which imposes restrictions on those wanting to enter
the banking industry, either as owners or executives.
According to Bank Indonesia regulations, businesspeople with
crime records are not allowed to own banks or become bank
executives.
Teten said the government should also issue a regulation to
restrict companies, with bad track records such as those involved
in KKN practices, from carrying out government projects.
"Pertamina for instance has to stop giving new contracts to
Mohammad Bob Hasan, who is known to have practiced KKN to obtain
contracts in the oil and gas industry during Soeharto's era,"
Teten said.
Bob Hasan could take part in bidding for government projects
only if he returned all the money he had illegally collected
through KKN practices, Teten said.
The West Natuna natural gas consortium recently awarded the
contract for the development of a 650-kilometer underwater
natural gas pipeline in the Southeast China Sea to PT McDermott
Indonesia. Bob Hassan is one of the company's shareholders.
The pipeline will be used to channel natural gas from the gas
fields west of the Natuna islands to Singapore starting from
2001.
The consortium -- which comprises of U.S.-based Conoco and
Britain's Premier Oil and Canada's Gulf Resources -- decided to
award the project to McDermott after the company offered the
lowest bid of US$335 million.
Teten said Pertamina should review the consortium's decision.
The decision must be approved by state oil and gas company
Pertamina to become effective.
Sources said on Tuesday that Pertamina's president Martiono
Hadianto would approve the consortium's decision within several
days.
Teten acknowledged that from a legal point of view, Bob Hasan
would remain innocent until a court judged him guilty of
practicing unacceptable business practices.
"Everybody knows he is wrong. But legally he is still innocent
because we don't see any law enforcement (actions) against him,"
Teten said. (jsk)