Pertamina 'must be consistent in anticorruption campaign'

Pertamina 'must be consistent in anticorruption campaign'

JAKARTA (JP): Legislators called on state oil and gas company
Pertamina on Monday to be consistent in its efforts to eradicate
collusion, corruption and nepotism from its many businesses.

Djusril Djusan and Priyo Budi Santoso of the House of
Representatives Golkar faction said they had not yet seen any
signs that Pertamina was fully committed to rooting out graft
from its operations, despite its move to sever ties with former
president Soeharto's family and cronies,

"What I am afraid of is the fact that the company is only
changing its skin in its current anti-KKN efforts. It has stopped
colluding with Soeharto's family and cronies only to start
colluding with another group," Djusril said, but he refused to
reveal the new group.

KKN is the Indonesian abbreviation for collusion, corruption
and nepotism.

He noted the company had recently awarded several contracts to
certain parties without competitive tendering, but he refused to
name the contracts.

"We want Pertamina to ensure all tenders are open to all
parties," Djusril added.

Priyo said he was not impressed with Pertamina's move to scrap
several deals with Soeharto's family and friends in its effort to
eliminate corruption, collusion and nepotism.

"The action has been taken too slowly. Pertamina doesn't look
serious, probably thinking the graft issue is of little
importance," Priyo said.

Pertamina's exploration and production director Priyambodo
Mulyosudirjo announced last week that it had listed 159 business
believed to have received oil and gas contracts from it during
Soeharto's era through illegitimate practices.

Most of the companies are linked to Soeharto's family and
cronies, while the others are connected to high-ranking officials
who Priyambodo refused to name.

The 159 companies are involved in a wide range of activities,
including oil and gas exploration, fuel and crude oil imports,
gas purchasing, distribution of fuel, the provision of gasoline
chemicals and catalysts, the development of liquefied natural gas
(LNG) and the shipping of LNG.

The state firm has already terminated 32 contracts, including
14 contracts to supply materials, which should enable the state
company to save US$64.7 million in dollar-denominated expenses
and Rp 313 billion ($34.8 million) in rupiah-denominated costs.

Pertamina has been considered one of the country's worst
symbols of collusion, corruption and nepotism for decades because
of the domination of Soeharto's family and cronies.

Priyo said Pertamina's officials still lacked efficiency
awareness, pointing to the fact that they still loved to squander
funds.

"Their lust for wasting money is extraordinary, even in the
monetary crisis," Priyo said.

Pertamina's spokesman Muliana Sukardi insisted on Monday that
the company was committed to combating collusion, corruption and
nepotism in its businesses.

"There are no more contracts which we won't offer in
transparent and open tenders. If the project involves a lot of
money, we shall announce it in the newspapers. If the project
only involves a small sum, we will only publicize it on the
notice boards in each of our business units," Muliana said. (jsk)