NTB readies for Newmont share purchase: Governor

The West Nusa Tenggara (NTB) provincial government is ready to purchase seven percent of copper and gold mining company PT Newmont Nusa Tenggara (NNT) as has been recommended by the House of Representatives, says governor Zainul Majdi.

Zainul made the statement after a meeting with the House leadership here on Tuesday.

The House leadership asked the NTB provincial government to ready the purchase following the finding by the Supreme Audit Agency (BPK) citing improprieties in the US$246.8 million sales and purchase agreement (SPA) recently signed between NNT and the Investment Agency (PIP) representing the government.

Deputy House Speaker Pramono Anung Wibowo said he has delivered an official letter to Minister of Finance Agus Martowardojo and Minister of Energy and Mineral Resources Jero Wacik on Oct. 28, 2011 on the improprieties in the SPA and asked NTB’s readiness to purchase the shares. “The letter is based on a recommendation from the House’s Commission VII on energy and Commission XI on finance and banking affairs that the deal is invalid.

The recommendation has been seen as political engineering by the Golkar Party faction in the House to improve opportunity for its chairman Aburizal Bakrie, owner of Bakrie Holding Group, to acquire the NNT shares through the provincial government.

Zainul said his government was preparing “a beauty contest” with its private partners who were interested in purchasing the seven percent shares.

“We will set a main requirement where contestants accept the 75:25 plan. We will be happier when winning contestants are ready to give more than 25 percent for the provincial government,” he said.

The Supreme Audit Agency (BPK) found the SPA improper because the funds were taken from the state budget and their eligibility for the deal had not secured political approval from the House. (rms)