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Ex-energy minister denies policy linked to bribery
Former energy and mineral resources minister Purnomo Yusgiantoro said the delay in phasing out leaded fuel had nothing to do with bribery by a UK-based company, but was caused by the subsidy shortage
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ormer energy and mineral resources minister Purnomo Yusgiantoro said the delay in phasing out leaded fuel had nothing to do with bribery by a UK-based company, but was caused by the subsidy shortage.
Purnomo, who currently serves as defense minister, said Monday that the energy and mineral resources ministry had proposed to stop using Tetraethyl Lead (TEL), a lead-based fuel additive, in the country’s subsidized Premium gasoline in 2003.
“We proposed to replace TEL with HOMC (High Octane Mogas Component), but the finance minister rejected the proposal as it would stretch the fuel subsidy,” said Purnomo who was served as energy and mineral resources minister from 2000 to 2009.
The government produced a plan to phase out the use of TEL in 1999 because of its harmful environmental effects, but this was not implemented until 2006.
The delay did not provoke much debate until March 2010, when a court session at London’s Southwark Crown Court revealed a UK company Innospec Ltd had pleaded guilty to bribing former high ranking officials at Indonesia’s Energy and Mineral Resources Ministry and state oil and gas firm PT Pertamina.
Names of the former director general for oil and gas at the ministry Rachmat Sudibyo and former Pertamina’s processing director Suroso Atmomartoyo were mentioned as having received bribes in the opening remarks presented by UK anticorruption body the Serious Fraud Office (SFO) and in sentencing remarks presented by Lord Justice Thomas on March 26, 2010.
Rachmat served as the Director General for Oil and Gas between 2001 and 2002. From 2002 to 2005, he served with upstream oil and gas regulator BPMigas. Suroso served as Pertamina’s refining director between 2004 to 2008.
Justice Thomas said total bribes paid were around US$8 million. “It is not possible to calculate precisely the total amount of bribes, but the best estimate is approximately 5 percent of $160 million, namely $8 million,” said the judge, adding that the bribes paid to Rachmat Sudibyo exceeded $ 1 million.
The document did not mention the estimated bribes paid to Suroso. In the SFO’s opening statement, it was mentioned that, only for a TEL shipment in November 2004, Suroso was bribed $500 per metric ton of shipped TEL. The total volume of the shipment was 450 metric tons.
Total bribes to Indonesian officials could have been higher than this as the indictment only covered between Feb. 14 2002 and Dec. 31, 2006, while Innospec had appointed its agent PT Soegih Interjaya (PTSI) to sell TEL to Pertamina since 1982.
Both Rachmat and Suroso denied involvement in the case, but have not yet said what they will do in response to the outcome of the UK legal process. The Corruption Eradication Commission (KPK) said it would follow up and would possibly cooperate with the UK SFO to collect more information.
