Pertamina denies bribing legislator
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)