Govt beaten again in court, this time against logging firm
Govt beaten again in court, this time against logging firm
JAKARTA (JP): The government has suffered another defeat in
the courts of law -- this time against a private logging company
with which it has formed a partnership, in a dispute over a
forestry concession in South Sulawesi.
An upset Minister of Forestry Djamaloedin Soeryohadikoesoemo
vowed he would fight this court battle, however, and is taking
the case to the Supreme Court. The government also plans to
counter-sue the private company, he said.
"We didn't do anything wrong. Why should we give up?"
Djamaloedin said after inducting a number of officials in his
ministry yesterday.
The South Sulawesi High Court has ruled in favor of PT. Ryani
Indah, an Ujungpandang-based company, which has formed a
partnership with the state-owned PT Inhutani I to form PT. Ryani
Hutani Sipatuo timber firm on a 40:60 equity basis.
The subsidiary won a 32,000-hectare forestry concession in
Maningpajo, Wajo regency, South Sulawesi, in 1991.
As it turned out, however, part of the concession overlapped
with the ranch belonging to a subsidiary of Ministry of
Agriculture.
PT. Ryani then filed a lawsuit against the Minister of
Forestry, the management of PT. Inhutani I and the head of the
South Sulawesi forestry office, seeking compensation for the
losses caused by the contract.
Both the Ujungpandang District Court and the South Sulawesi
High Court ruled for PT. Ryani, ordering the government pay Rp
2.4 billion ($1.1 million) the company had invested in the joint
venture plus back interest payments.
Inhutani itself had invested Rp 1.6 billion in the venture and
the Ministry of Forestry had provided Rp 3.8 billion in loans to
finance the operation of PT. Ryani Hutani Sipatuo.
Djamaloedin accused the management of PT. Ryani of squandering
the money to buy luxurious cars as well as paying the rent of the
office which is actually belongs to PT. Ryani.
The ministry is currently preparing a new lawsuit against
PT. Ryani for its refusal to allow PT. Inhutani I to inspect the
project and also for embezzling state funds.
On the overlapping concession, he said the Ministry of
Forestry and the Ministry of Agriculture have agreed to jointly
use the area.
"We can grow sengon trees as well as rumput gajah for
livestock in the same area," he said, referring to a kind of
local tree and wide-leaf grass. (09)