Sugiharto talks tough to Pertamina
Sugiharto talks tough to Pertamina
Urip Hudiono and Febiola Desy Unidjaja, The Jakarta Post/Jakarta
The government will not hesitate to prosecute any Pertamina
officials suspected of wrongdoing in the sale of two tankers
belonging to the state oil and gas company, a minister says.
The Business Competition Supervisory Commission (KPPU)
recently issued a report saying there was evidence these sales
were fraudulent.
State Minister of State Enterprises Sugiharto said any
officials found to engaged in illegal behavior would be fired and
prosecuted.
"I will look into the KPPU's report of the case, and take
necessary actions as soon as possible," Sugiharto said on Friday.
Sugiharto said he would also take into account the agency's
recommendations of immediately suspend the activities of
Pertamina's director of finance Alfred Rohimone who played a
dominant role in the sales process.
"Yes, that will certainly be among the measures to be taken,"
he said.
"If we have collected enough evidence, then we should submit
it to the police and prosecutors, so that the case can be brought
to court," he said.
He, however, refused to say when exactly he would replace the
officials or file the case to court.
The KPPU ruled on Thursday that Pertamina and three of its
business partners were guilty of colluding in the sale of two of
the company's VLCC (very large crude carrier) tankers worth
US$184 million last year.
As the market price of each of the tankers was between $120
million and US$150 million, the sales had caused the state to
lose at least $50 million.
The KPPU recommended the three partners -- Singapore-based
financial advisor Goldman Sachs, Indonesian shipping firm PT
Equinox, and the tender winner, Bermuda-based shipping firm
Frontline Ltd -- to pay $61.27 billion in fines to the state and
Rp 180 billion ($19.4 million) in penalties.
The commission also ordered Pertamina's board of directors and
board of commissioners to report their wrongdoings to a
shareholders meeting, and forbade the company to do business with
the three partners until they had complied with the legally
binding decision.
In a related development, Pertamina's board of commissioners
sought a clarification from Alfred, who was said to have played a
key role in the tanker sales.
President Commissioner Martiono Hadianto said after the
board's meeting with Alfred that they were collecting information
for the coming shareholders meeting.
"This was not an interrogation, but we need to get more
information from the director before we can hold the shareholders
meeting," he said.
The board of commissioners had the power to suspend the board
of directors, but any decision had to be approved at a
shareholders meeting.
"We have the authority to suspend the director but we have to
have valid reasons to do so. That is why we will have another
meeting next week," he said.
Martiono promised they would abide with the KPPU's decision to
hold a shareholders meeting within a month, to decide whether
they would take legal action should Alfred be found guilty.
Alfred left the meeting after three hours of clarification. He
would make no comment.
Meanwhile, Goldman Sachs said that KPPU's ruling was baseless
and inconsistent with the facts of the tanker sales.
"We are sure that we have conducted the sales in a rightful
manner and in accordance with international standards," the
company said.
Similarly, Frontline said in a statement that would take all
steps to challenge the ruling and have it overturned.
"Frontline absolutely rejects allegations that their conduct
in the transaction was anything but proper and professional," the
company said, arguing that the sales were based on fair market
terms of an open auction.