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.