Supertanker sale illegal, senior official asserts
Fitri Wulandari and Tony Hotland, Jakarta
The sale of two giant tankers owned by state oil and gas firm PT Pertamina has violated at least one government regulation as the tankers were sold without a prior asset evaluation process by key ministries, according to a senior official.
Director General of Financial Institutions Darmin Nasution said that based on government regulation No. 31/2003 on the establishment of Pertamina as a limited liability company, the Ministry of Finance and the Ministry of Energy and Mineral Resources should jointly determine the value of the tankers prior to the divestment.
"The tankers can be sold if the value had been determined (by the two ministries)," he told reporters following a meeting with lawmakers about the 2005 state budget draft.
He did not provide further details.
Meanwhile, Minister of Finance Boediono refused to comment when asked about the case. He simply repeated, "I won't comment" after each question.
The sale of the Pertamina tankers had become controversial not only because of massive corruption that has been alleged, but also because of the violation of regulations in the divestment process.
Reports have suggested that the sale was made without prior approval of the Minister of Finance. (Pertamina only obtained the approval of State Minister of State Enterprises Laksamana Sukardi, who is also the president commissioner of Pertamina).
On Monday, vice president Hamzah Haz stated that the sale of the vessels must receive approval from the Ministry of Finance.
"The conclusion reached in our meeting was that the decision to sell the vessels should have rested with the Ministry of Finance and the State Minister of State Enterprises. But it should be cleared that it must be approved by the Ministry of Finance," Hamzah said.
Hamzah urged Pertamina to be transparent and explain to the public all the details in the controversial transaction.
The Corruption Eradication Commission (KPK) is currently investigating the case.
Pertamina's tanker scandal centers around the sale of two Very Large Crude Carriers (VLCC) by Pertamina's current management. The sale took place just a year after the previous management team had purchased the vessels, which can transport up to 2 million barrels of crude oil per trip.
Bermuda-based Frontline Ltd. were given the green light to buy the supertankers after the tender process, despite new evidence leaked to press that showed that Frontline did not have the best bid. Indonian Essar Shipping Ltd., which did have the best bid, according to the document, was not awarded the contract.
Frontline has already put up the downpayment for the vessels. More payments will be made in July and September when the vessels are delivered to Pertamina by Hyundai Heavy Industries.
The previous management decided to purchase the tankers in a bid to save on costs incurred for leasing tankers. But the newly appointed management team decided to divest the assets to raise cash to help increase the company's cash position. The House of Representatives has recommended that Pertamina keep the tankers as it would be more beneficial for the company.
Meanwhile, Pertamina's Workers Union (SPPSI), which has also opposes the divestment, plans to meet with President Megawati Soekarnoputri to report on the issue, according to chairman Otto Geo Diwara.