Wed, 21 Mar 2001

TNI chief's approval sought for questioning Ginandjar

JAKARTA (JP): Former minister of mines and energy Ginandjar Kartasasmita, a suspect in graft cases involving state oil and gas company Pertamina and a local partner, said on Tuesday that he is awaiting the Indonesian Military (TNI) chief's approval prior to testifying before the prosecutors.

"I have been summoned to testify at the Attorney General's Office on Thursday (March 22, 2001).

"But, I have yet to receive approval from the TNI chief (which is required) because I am a retired military officer but was active when the incident occurred," Ginandjar told a media conference.

"Hopefully, the TNI chief will give his approval tomorrow (Wednesday)," he said.

Ginandjar, who is now deputy Speaker of the People's Consultative Assembly (MPR), denied that he had committed any wrongdoings during his term in Cabinet.

"I will testify to assist the investigation, but I cannot accept being declared a suspect," he said, while citing that he has been summoned to testify as a witness.

The Attorney General's Office has named Ginandjar and his successor IB Sudjana as suspects in corruption cases involving Pertamina, which allegedly resulted in US$24.8 million in state losses.

The Office has previously named another two suspects in the same cases, including former Pertamina president Faisal Abda'oe and PT Ustraindo director Praptono H. Hupojo, a relative of former first lady, the late Tien Soeharto.

Attorney General's Office spokesman Muljohardjo said Ginandjar is alleged to have illegally approved four technical assistance contracts between Pertamina and private oil company PT Ustraindo Petrogas in early 1992 and 1993.

"Our investigations and witness' statements conclude that Ginandjar, as the minister of mines from 1988 until 1993 and chief commissioner of Pertamina, approved the deals in violation of regulations regarding technical assistance contracts for oil development, causing $18 million in state losses," Muljohardjo has said.

The spokesman said his office had found during its investigations that the deals between Pertamina and PT Ustraindo violated regulations on technical assistance contracts because they covered oil fields which were still productive at the time.

Moreover, while regulations required PT Ustraindo to pay the costs of oil development in the contract areas, it was Pertamina who actually bore the costs, Muljohardjo added.

"Sudjana, as the minister of mines and Pertamina's chief commissioner from 1993 to 1998 also breached laws by approving amendments to the contracts, resulting in losses of $6.8 million to the state," he said.

Ginandjar, who is taking a break from a one-year overseas lecture program, which commenced last August, dismissed the allegations saying that he was only responsible for preparation of the contracts, not their implementation.

"The Technical Assistance Contract (TAC) between Pertamina and PT Ustraindo was part of the government's policy to improve our nation's independence through the oil and gas sector.

"And I was not involved in the implementation of the contracts," he said.

The contracts with PT Ustraindo covered oil fields in Bunyu, E. Kalimantan; Prabumulih and Pendopo in South Sumatra; and Jatibarang on the north coast of West Java.

Ginandjar, a retired three-star Air Force general, suggested that he is the target of a political conspiracy.

"I have been accused of supplying arms to the Maluku province and financing unrest in several parts of the country.

"The accusations are groundless and I have proof that I have been active in academic activities in the United States and Japan," he said. (imn)