Sudjana's resignation 'not necessary'

Sudjana's resignation 'not necessary'

UJUNGPANDANG (JP): Demanding the minister of mines and
energy's resignation will not solve the Busang gold mine hoax, a
member of the House of Representatives said yesterday.

Tadjuddin Noor Said of Golkar told The Jakarta Post yesterday
that Sudjana's resignation would not be ideal.

"The most important thing is that the government guarantees
that such a scandal will not happen again in future. This could
hamper the country's investment climate because investors might
think that there is business uncertainty in Indonesia," said
Tadjuddin, who is known for being outspoken.

"There must be a system to prevent such a scandalous story
happening. Do not ask the minister to step down," he said.

The Ministry said Saturday that Sudjana had never said he
would seek a second term in office.

On May 13, youths and students from four universities marched
to Sudjana's office to demand his resignation for failing to
detect the notorious mining fraud.

They said Sudjana had to be held responsible by stepping down,
and that the police should investigate all officials involved in
the fraud.

Local police said Saturday that the fate of hundreds of
employees at the Busang I camp in East Kalimantan remained
unclear, although they had received their salaries for May.

At least 375 workers are still waiting for Bre-X officials'
promise to decide their fate in mid-May.

Canada's Bre-X Minerals Ltd announced Thursday that it had
earmarked at least US$600,000 to pay the 488 workers that it
planned to layoff after the Indonesian government's decision to
freeze all operations of Bre-X and its subsidiaries here.

Bre-X financial director Bernhard Leod had said that severance
pay would hopefully be paid before the May 29 general election.

Leod said payments for 177 casual workers, who earned between
Rp 5,000 and Rp 10,000 a day, had begun Thursday.

Kutai police chief Lt. Col. Iwan Slamet was quoted by Antara
saying, "As of today we have not received any information from
Bre-X. However, the 374 workers have received their salaries for
May."

Earlier reports said that workers at the company's Busang gold
mine in Muara Ancalong were holding the local head of
administration and personnel, Idris, and surveyor Agus Tripadi
hostage. Two Filipino geologists, Bobby Ramirez and Manny Puspos,
were also taken hostage.

But the reports of kidnapping have been strongly denied by
Iwan. "The workers just asked them not to leave the location, as
they feared no one could help them settle their rights."

Philippines President Fidel Ramos expressed concern Friday
over the fate of the two Filipino geologists, and ordered Foreign
Secretary Domingo Siazon to verify their whereabouts.

Tenggarong military district commander Lt. Col. Soekarno
confirmed yesterday statements from police that the two
geologists were at the Balikpapan police station.

Soekarno also denied that police and local military officers
were guarding the base camp. "There are no special troops posted
in Busang."

The head of the Ministry of Manpower East Kalimantan office,
Soewardi, said he could do little to help the workers because
they were not registered with his office.

"We have never received any reports on the workers, including
the six Filipino geologists," Soewardi said.

This was strongly denied by Bre-X liaison officer John
Yohannes: "We have registered all the workers at the ministry's
office."

Leod said Friday that Bre-X planned to sell all its assets in
Kalimantan, Jakarta, Aceh and North Sulawesi to meet financial
obligations including severance pay for its employees. The
companies is estimated to have total assets worth Rp 2.5 billion.

Leod said that management had requested Price Waterhouse to
audit its Indonesian assets, Antara reported.

He said the assets included the Busang I, II and III projects
in East Kalimantan, Sable in Aceh and Sangihe in North Sulawesi.

None of the sites have started production.

Through its subsidiary Westralian Atas Mineral, Bre-X has a 60
percent share in Busang I with PT Krueng Gasui, which has 30
percent, and PT Sungai Atan Perdana, which has 10 percent.

In Busang II and III, Bre-X has a 45 percent share, Freeport
McMoran Copper & Gold Inc has 15 percent, Nusamba group has 30
percent and the Indonesian government has 10 percent.

In Sable, Aceh, Bre-X was exploring gold reserves with PT
Askatindo Karya Mineral. In Sangihe, Bre-X's partner is PT Sungai
Belayan Sejati. (30/prb/anr/cst/sur)