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)