Chevron Caused $9.9 Million in State Losses: AGO

Jakarta Globe, Rangga Prakoso, November 15, 2012

The Attorney General's Office said that Chevron Pacific Indonesia's
bioremediation project lost the state $9.9 million. (AFP Photo) 

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Millions of dollars have been lost due to the corruption case related to Chevron Pacific Indonesia’s bioremediation project, the Attorney General’s Office revealed on Wednesday.

“Based on the audit report completed by the State Finance Development Comptroller (BPKP), $9.9 million in state losses were accrued,” Agung Setia Untung Arimuladi, a spokesman for the Attorney General's Office, commented. “Given this result, the case will be taken further and an indictment will be issued.”

The AGO alleges that CPI was paid $23.4 million in recovery costs by BP Migas for a bioremediation project at Duri in Riau that was never completed. Chevron appointed Green Planet Indonesia and Sumigita Jaya to recover the polluted soil with the method of bioremediation. Investigation of AGO shows that both companies did not have technical qualification and certificate from the authorities to manage the waste, and that the project was never done.

CPI has denied the charges and BP Migas has reiterated that the state lost nothing from the site clean-up project. CPI said that all costs relating to its project had been borne by the company, and not yet included in the cost recovery program.

“No state funds have been used in the execution of this project,” Chevron said in a statement issued recently.

Bioremediation projects are meant to normalize soil contaminated with toxic substances. CPI said that its bioremediation project was approved and monitored by the appropriate government authorities.

Investigation team of AGO has questioned 80 witnesses and four experts and named seven suspects, five of them from Chevron.

CPI is the local arm of the US energy giant Chevron.

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