Union demands Pertamina bosses resign for lying
Union demands Pertamina bosses resign for lying
The Jakarta Post, Jakarta
The Pertamina Workers Union (SPPSI) demanded on Wednesday that
state oil and gas firm PT Pertamina's president Ariffi Nawawi and
finance director Alfred Rohimone to step down for lying to the
public in defending the controversial sale of the company's two
supertankers.
"The two of you must immediately resign for lying to the
Indonesian people," SPPSI chairman Otto Geo Diwira said in a
press statement.
Otto said Ariffi and Alfred had lied when they told the press
that leasing a single-hulled Very Large Crude Carrier (VLCC)
would be cheaper than owning a double-hulled VLCC.
The two had said owning a double-hulled VLCC would cost
US$45,000 a day in operational expenses, while leasing a single-
hulled would cost only $20,000 a day.
But the union said the actual cost of leasing a single-hulled
tanker was costlier than that claimed by the Pertamina
executives. It pointed out that among the bids made in
Pertamina's June 22 tender, two different companies had offered
$32,950 and $38,768 a day for leasing a single-hulled VLCC.
It added that investment and operational costs for owning a
double-hulled VLCC was also much lower than that claimed by the
two.
"The union has calculated that investment and operational
costs for a double-hulled VLCC is only $25,950 a day," Otto said.
"(Therefore) It will be a huge loss if Pertamina leases a
single-hulled VLCC."
The previous Pertamina management ordered two double-hulled
VLCCs in 2002 in a bid to cut down huge expenses for leasing
tankers from third parties. The two VLCCs, bought for $130
million, are being constructed by South Korea's Hyundai Heavy
Industries.
The current management sold the unfinished tankers, however,
raising suspicions that the sale was intended to allow tanker
operators to continue to enjoy high profits from leasing the
tankers to Pertamina.
The case became murkier when the tender to divest the tankers
was won by Bermuda-based Frontline Ltd., which, according to a
document leaked to the press, had the second-best bid at $184
million. The best bid for the supertankers was the $188 million
offered by Mumbai-based Indonian Essar Shipping Ltd.
Meanwhile, non-governmental grouping Professional Civil
Society (MPM) reported the case on Wednesday to the Attorney
General's Office for alleged corruption and collusion in the
transaction.
MPM chairman Ismed Hasan Putro said the divestment of the
vessels was not proper.
"We found data suggesting irregularities and corruption, which
would cause a potential loss to the state of $40 million, or Rp
360 billion," Ismed told reporters.
Reports also abound that Pertamina violated existing
regulations in the tankers' sale, as it had proceeded without
prior approval of Minister of Finance Boediono; it had only
obtained the approval of State Minister of State Enterprises
Laksamana Sukardi, who is president commissioner of Pertamina.
In addition, the finance ministry and the Ministry of Mineral
Resources and Energy should have determined the value of the
tankers for the divestment.
Boediono said on Wednesday the Pertamina management would be
held responsible if an audit proved that the company had sold the
tankers for less than their actual value.
"The sale process is fine as long as it is accountable to the
public. The Supreme Audit Agency (BPK) can conduct the audit," he
said.