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Friday, March 30, 2012

Chevron Indonesia Graft Investigation Expands to Include BPMigas

Jakarta Globe, Rangga Prakoso | March 30, 2012

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The investigation into alleged graft surrounding an environmental restoration project administered by Chevron Pacific Indonesia has now expanded to include upstream oil and gas regulator BPMigas.

Andhi Nirwanto, the assistant attorney general for special crimes, said on Thursday that the regulator was under scrutiny because of its decision to reimburse CPI for the bioremediation project, despite allegations that it was never actually completed.

“We’re looking into the role of [BPMigas] because they paid out the reimbursement,” he said.

The bioremediation project in Duri, Riau, was intended to normalize the conditions of soil contaminated with toxic substances from CPI’s oil drilling.

CPI contracted the project to Green Planet Indonesia and Sumi Gita Jaya.

The work was to be paid for on a cost-recovery basis, meaning that CPI was reimbursed the full $23.4 million cost of the project by BPMigas.

But investigators, acting on a tip, say they believe the work was never completed.

Instead, they allege, someone pocketed the money from BPMigas without first conducting the agreed-upon environmental repair work.

Andhi said that the Attorney General’s Office was working closely with the Corruption Eradication Commission (KPK) in the investigation.

“If indeed the KPK has any data about the Chevron case, they will hand it over to us,” he added.

The AGO has named seven suspects in the case, including five officials from CPI and one each from Green Planet and Sumi Gita.

Earlier this month, it announced it had sought travel bans for all seven, but on Thursday said the request had been denied by the immigration department on a technicality.

“One of the requirements for a travel ban application is a picture of the suspect, which we didn’t have,” Attorney General Basrief Arief said.

He said investigators would get pictures of the suspects later on Thursday before deciding on whether to re-file the travel ban request.

A spokesman for Chevron, Yanto Sianipar, previously denied the allegations, insisting the company was not guilty of any wrongdoing in a project it said was closely monitored by the Environment Ministry.

It also denies the AGO’s claims that the project cost $270 million, saying the figure covers all its environmental projects in the country.



A logo of Chevron Pacific Indonesia.
(Antara Photo)  

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