Sigit questioned in Balongan scandal

Sigit questioned in Balongan scandal

JAKARTA (JP): A son of former president Soeharto, Sigit
Hardjojudanto, was questioned at the Attorney General's Office on
Wednesday for his alleged involvement in the marking up of the
Balongan oil refinery project in Indramayu, Cirebon, West Java,
in 1989 and 1990.

Sigit, accompanied by lawyer Juan Felix Tampubolon, was
examined for over four hours from 9 a.m. by prosecutor Umbu Lage
Losara.

He was questioned in connection with the marking up of the
value of the project by US$113 million.

Sources at the Attorney General's Office said that there was a
letter from Foster Wheeler in July 1989, addressed to the
Director of Processing at state oil and gas company Pertamina,
Tabrani Ismail, requesting former Soeharto's reference for the
then minister of mining and energy Ginandjar Kartasasmita. "A
presidential decree about the cooperation between Pertamina and a
foreign company and about the development and construction of the
Balongan oil refinery is required," the letter said as reported
by Antara.

It is alleged that Sigit, along with two other businessmen,
Eri Putra Odang and Bing Kintamani, were believed to have placed
pressure on Pertamina officials to take up Foster Wheeler's
offer.

Eri allegedly received US$60 million or four percent of the
price offered by Foster Wheeler.

It was believed that the price of the project was marked up,
especially in "processor licensing" at the United Oil Petroleum.

Tampubolon, however, said after the examination that his
client knew nothing about the case.

The Balongan refinery was built from 1990 to 1995 by Pertamina
with a consortium led by Foster Wheeler of Britain as the main
contractor.

Pertamina built the refinery at a cost of $2.45 billion, but
it was believed that the real cost of the project was only $1.6
billion.

Sigit's younger brother, the fugitive Hutomo "Tommy" Mandala
Putra, was sentenced to 18 months in prison by the Supreme Court
last September for corruption. (sim)