Kuntoro calls for thorough inquiry into refinery graft
JAKARTA (JP): Minister of Mines and Energy Kuntoro Mangkusubroto called on the public prosecutors and government auditors on Monday to thoroughly investigate alleged corruption at the Balongan refinery in Indramayu, West Java.
Kuntoro said that the prosecutors from the Attorney General's Office and auditors from the State Financial Comptroller (BPKP) should examine all government officials and state oil and gas company Pertamina's officials involved in the preparation, approval and development process of the refinery in order to find the people responsible for the corruption.
"I think all persons involved in the process should be questioned," Kuntoro said on the sidelines of a ceremony to award oil and gas production sharing contracts to four contractors.
Kuntoro did not identify the people involved in the preparation, approval and development of the refinery project.
The Balongan case hit the headlines last year but was forgotten for a long time until the anticorruption watchdog Indonesian Corruption Watch (ICW) sent a letter to President BJ Habibie last Thursday questioning him about the follow up to the investigation of the case.
The refinery was built between 1990 and 1995 and has a processing capacity of 125,000 barrels of oil per day.
ICW suspected the President of intervening to stop the investigation in order to protect his close associates.
ICW said that it had information that the Attorney General's Office had reported the identities of the people responsible for the corruption to the President four months ago, but no legal action had been taken against them.
Former attorney general Muhammad Ghalib, in a letter sent to Habibie on May. 21 this year, said the investigation by his office indicated former Pertamina president Faisal Abda'oe and former Pertamina processing director Tabrani Ismail were implicated in the corruption.
Faisal, a close associate of former president Soeharto, ended his leadership of Pertamina last year after eight years of service.
He currently serves as head of the government-sponsored task force for the Natuna liquefied natural gas project, which in the past was chaired by Habibie.
Ghalib also said former mines and energy ministers Soebroto and Ginandjar Kartasmista, who is the outgoing coordinating minister of economy, finance and industry, and Pertamina president AR Ramly and several other officials, should also be questioned over their knowledge, or possible involvement in the case.
Ghalib said Pertamina awarded the contract for the construction of the refinery to the British company Forster Wheeler in 1990 despite the fact that the cost of the project had been marked up by US$113 million.
Ghalib suspected Forster Wheeler of colluding with Soeharto's son Sigit Hardjodjudanto to pressure Pertamina to accept the marked-up price.
Kuntoro said there were signs that the Attorney General's Office and BPKP would soon finalize their investigation into the case.
He said both agencies would submit their reports to Coordinating Minister of Development Supervision/Administrative Reforms Hartarto Sastrosoenarto who was in full charge of handling the case.
"I am awaiting the (audit and investigation) results signed by the coordinating minister of development supervision/administrative reforms," Kuntoro said.
Pertamina's president Martiono Hadianto refused to comment on the case. (02/jsk)