Pertamina unit director suspended over graft allegation

Pertamina unit director suspended over graft allegation

The Jakarta Post, Jakarta

The newly-appointed head of state oil and gas company
Pertamina has suspended the director of one of the firm's units
over alleged graft involving more than Rp 200 billion (US$21.5
million).

"I have suspended the director and shall ask the police to
investigate the case," Pertamina's president Widya Purnama told
reporters on Tuesday, as quoted by Detik online news agency.

Widya refused to name the director, but he said Pertamina
would withhold the director's salary pending the completion of
the investigation of the case by the police. If the director was
proven not guilty, Pertamina would pay him his outstanding salary
plus interest.

This is the first corruption case in the state firm that has
been revealed by Widya since he took over the reins of the firm
less than a month ago. Widya has declared that the "fight against
corruption, including the oil mafia", would be one of his
priorities.

According to Pertamina finance director Alfred Rohimone, the
graft case occurred over a period of several years, starting from
2002. Pertamina was then led by Baihaki Hakim.

The director of PT Pertamina Saving and Investment (PSI)
bought a negotiable certificate deposit (NCD) worth Rp 60 billion
issued by Bank Swansarindo, which has since been renamed Bank
Persyarikatan Indonesia (BPI).

The NCD was later converted into a stake in BPI, before being
changed into a deposit with the bank, on which PSI received
interest. However, PSI stopped receiving interest in February
2004 and, after an investigation, Pertamina found that the
deposit had not been recorded in BPI's books.

Aside from buying the NCD, PSI spent Rp 60 billion on buying a
stake in the financially troubled Goro chain of wholesalers,
which Widya described as a "stupid" decision.