Wed, 06 Oct 1999

ICW foresees no closure of graft case

JAKARTA (JP): The Indonesian Corruption Watch (ICW) said they expected no resolution of the alleged corruption at the Balongan oil refinery in West Java if President B.J. Habibie retains power in the new government.

"If Habibie retains his power in the next government, the alleged irregularities in the construction of the Balongan refinery will remain unsolved," ICW president Teten Masduki said on Tuesday.

Last month, ICW sent a letter to Habibie, asking him why he suspended the investigation into the alleged corruption at the Balongan refinery, which reportedly involved a son of former president Soeharto and a number of senior officials at various ministries.

Legislators have accused state oil company Pertamina of marking up the cost of the US$2.4 billion refinery, which was completed in 1995.

Legislators said the real cost of the project should have been only $1.6 billion. But the Attorney General's Office estimated the excess of the cost at only $113 million.

According to ICW, the Attorney General's Office reported to Habibie in May the identities of possible suspects in the alleged graft case, but no legal action was taken.

"I, however, see new hope with the election of reformist Amien Rais to the People's Consultative Assembly chairmanship, which will hopefully lead to the election of a new credible government," Teten said.

ICW is continuing its investigation into the Balongan case and is currently crosschecking documents from people allegedly involved, Teten added.

"Pertamina is not cooperative at all," Tetan said of the state oil company's attitude toward the investigation.

In his letter to Habibie in May, then attorney general Muhammad Ghalib mentioned former Pertamina president Faisal Abda'oe and former processing director Tabrani Ismail as possible suspects in the alleged corruption case. (03)