Pertamina denies bribing legislator
JAKARTA (JP): State oil and gas company Pertamina denied on Monday it awarded a contract to a South Korean firm connected with a former legislator in reward for his help in blocking a proposed oil and gas bill.
Pertamina spokesman Ramli Djaafar said in a statement the company recently held negotiations with Korean firm Il Chil Chemical on the purchase of 8,000 tons of purified telephatalic acid (PTA) from Pertamina's refinery in Plaju, South Sumatra.
He said the negotiations were conducted in accordance with proper business norms.
"The negotiations were by no means connected with former legislator Rahadi Sayoga," Ramli said.
Local papers reported Rahadi was an executive of the South Korean firm. Rahadi helped block the oil and gas bill proposed by former minister of mines and energy Kuntoro Mangkusubroto and debated by the previous House of Representatives. Pertamina opposed the bill.
Local papers reported the head of Pertamina's foreign marketing division, John L. Tanamal, sent a letter to Rahadi, in his position as an executive at the South Korean firm, on Aug. 5 this year to inform him that Pertamina agreed to sell 8,000 tons of PTA to the Korean company.
The letter was sent at the same time the House was debating the proposed oil and gas bill.
Ramli acknowledged the existence of the letter, but did not confirm or deny the letter was addressed to Rahadi.
Ramli said Il Chil initially asked to purchase 10,000 tons of PTA at US$310.00 per ton.
Pertamina offered to sell the company 8,000 tons of PTA at $366.00 per ton, which was agreed upon by Il Chil during negotiations.
But the deal was abandoned after the South Korean firm made additional requests relating to the quality and transportation of the PTA which Pertamina could not meet, Ramli said.
"Il Chil Chemical then canceled the purchase. Thus, Pertamina never sold the PTA to Il Chil Chemical," Ramli said.
Rahadi denied earlier any connection to the South Korean firm and dismissed reports he had received a letter from Tanamal.
"The reports are completely wrong. How could I become an executive of a South Korean firm," Rahadi said to The Jakarta Post.
The oil and gas bill proposed by Kuntoro was aimed at liberalizing the country's oil and gas sector and ending Pertamina's decade-long monopoly.
However, Rahadi and the majority of the members of the House committee deliberating the bill wanted Pertamina to maintain its monopoly for a transitional period.
The ministry and Pertamina accused one another of attempting to bribe legislators during the bill's deliberation.
The bill was officially rejected last month. (jsk)