The Jakarta Post, Jakarta | Fri, 07/09/2010 11:02 PM
Attorney General’s Office has named East Kalimantan governor Awang Faroek Ishak a corruption suspect in connection with divestment of coal company PT Kaltim Prima Coal (KPC) which state prosecutors believe has resulted in Rp 576 billion (US$63 million) in state losses.
Assistant Attorney General for Special Crimes M. Amari said Friday that Awang was accused of embezzling state money resulting from sale of 5 percent of KPC shares belonging to East Kutai government to PT Kutai Timur Sejahtera (KTS) worth Rp 576 billion in 2006. As the then East Kutai regent, Awang approved the sale with the consent of the regional legislative council.
State prosecutors also declared local coal company PT Kutai Timur Energy (KTE) president director Anung Nugroho and director Apidian Tri Wahyudi suspects in the case, Antara news agency reported.
The case centers on divestment of PT KPC, which required the coal giant to sell 18.6 percent of its shares to the East Kutai government. The regional government handed over its right to PT KTE in 2004, but due to financial constraint, the company transferred the right to PT Bumi Resources in 2005.
Based on an agreement with Bumi, PT KTE was entitled to 5 percent of the KPC shares.
On Aug. 14, 2006, Awang asked for the legislative council’s endorsement of the sale of PT KTE shares in PT KPC to PT KTS.
Awang questioned his implication in the corruption case, saying the state prosecutors lacked professionalism.
“I have never been questioned, why do they declare me a suspect all of sudden? This is strange,” Awang said in his speech on Friday evening.
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