Pertamina blamed for oil smuggling
Eva C. Komandjaja, The Jakarta Post, Jakarta
The government plans to speed up a proposed shake-up of the management of state oil and gas firm PT Pertamina in response to the failure of the company's internal monitoring system to prevent oil smuggling from an East Kalimantan port, a minister says.
"Fuel theft and smuggling activities at Lawe Lawe Port reflect the management's failure in its internal monitoring system," State Minister of State Enterprises Sugiharto said on Tuesday.
"I will review and find out why the monitoring system, set up by the current management, failed."
Fuel smuggling at Lawe Lawe Port has been in the headlines over the past two weeks after the National Police uncovered the crime. Police have arrested several low-ranking officials at Pertamina and a Singaporean citizen for their alleged involvement in smuggling subsidized fuel products to neighboring countries.
The smuggling is thought to have caused Rp 8.8 trillion (US$850 million) in state losses.
Sugiharto said the company's board of directors should be held responsible for setting up a monitoring system that failed to prevent the crime.
"They are giving full cooperation to the police in investigating the crime. But they should also be held responsible for failing to prevent the crime from happening," he said, adding that he had sent a warning letter to the firm's directors.
Sugiharto said he would speed up a proposal to reshuffle the company's management. The proposal will be submitted to a final assessment team, chaired by President Susilo Bambang Yudhoyono, but he did not give an exact date.
Rumors have been circulating about possible candidates to take over Pertamina's top post, but Sugiharto would not name a possible replacement for current president Widya Purnama.
"A shortlist of candidates has not yet been drawn up," he said.
The three rumored candidates are the director general of oil and natural gas at the Ministry of Energy and Mineral Resources, I'in Arifin Takhyar, Pertamina president commissioner Martiono Hadianto and the head of the Upstream Oil and Gas Regulatory Body, Tubagus Haryono.
Separately, National Police spokesman Brig. Gen. Soenarko said the East Kalimantan Police had arrested 16 more suspects in connection with the smuggling at Lawe Lawe.
"Ten of the 16 are Pertamina employees while the rest are ship crew members," he said. Soenarko did not elaborate on the names or positions of the Pertamina employees.
With these latest arrests, 30 suspects in the smuggling case are being held by the East Kalimantan Police. (006)