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PGN ousts director, will probe price manipulation claims

In an extraordinary meeting on Monday, shareholders of state-owned gas distributor PT Perusahaan Gas Negara Tbk (PGN) voted to fire commerce director Michael Baskoro Pulwo Nugroho

Raras Cahyafitri (The Jakarta Post)
Jakarta
Tue, March 6, 2012 Published on Mar. 6, 2012 Published on 2012-03-06T11:22:32+07:00

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PGN ousts director, will probe price manipulation claims

I

n an extraordinary meeting on Monday, shareholders of state-owned gas distributor PT Perusahaan Gas Negara Tbk (PGN) voted to fire commerce director Michael Baskoro Pulwo Nugroho.

Michael, who was suspended in January after alleging that PGN president director Hendi P. Santoso had colluded with customers to manipulate prices, was dismissed after he was given a rare opportunity to defend himself.

PGN corporate secretary Heri Yusup told journalists after the closed meeting that Heri was dismissed for poor performance and not the collusion allegation.

Heri said that PGN would appoint a successor for Michael at another extraordinary shareholders meeting in May or June.

PGN’s board of commissioners issued a decree suspending Michael on Jan. 20. The company had given no details for the suspension, only saying that Michael had failed to carry out his duties.

The decree was issued several weeks after Michael submitted a letter to the board on Dec. 1.

In the letter, a copy of which was obtained by The Jakarta Post, Michael alleged that there were irregularities in gas distribution to clients that allegedly involved Hendi.

In the middle of December, according to Michael, he was called to attend a commissioners’ meeting, where he said he declined their request to withdraw the letter.

Michael told reporters that he tendered his resignation at the shareholders meeting.

“I announced the resignation today, not before the meeting, because I wanted to see the response from my defense. However, I get no clear answer over my suspension and decided to resign because I saw no possibility that I could stand any longer. The situation developed from involving one person to a number of people,” Michael said.

Michael said the investigation over the allegations would be continued. “[Commissioner] Pudja Sunasa said that he will process the case.”

He added that he believed in Pudja Sunasa, a former official of the Energy and Mineral Resources Ministry’s inspectorate general, although several other commissioners had turned their backs on him.

Michael said that three of five PGN commissioners urged him to withdraw his letter of complaint: president commissioner Tengku Nathan Machmud, commisoner Widya Purnama and commissioner Megananda Daryono

PGN appointed attorney Hotma Sitompul to represent the company in the case.

Sitompul said that no legal investigation was in progress on Michael’s sallegations.

“Be careful in alleging corruption. If there is no evidence for the allegation, one can be engaged in legal issues,” Sitompul said.

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