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« FCPA risks in China discussed at Fordham Law event | Main | China Corruption Blotter (January 31, 2014) »
Friday
Jan312014

Indonesia oil boss denies bribing lawmakers

The head of state energy company PT Pertamina, Karen Agustiawan, was ordered to pay bribes to members of the House of Representatives, evidence from a related investigation allegedly revealed.

Indonesia’s Independent Corruption Eradication Commission (KPK) prepared a case dossier about former SKKMigas chief Rudi Rubiandini that implicated the Pertamina boss, according to industry source Oil Patch Asia.

Pertamina is Indonesia’s state-controlled exploration and production operator for oil and gas, and SKKMigas handles sales of oil and gas to local and international customers.

Rubiandini is on trial for allegedly accepting bribes of more than $2.6 million from various sources, including oil buyers. He was arrested in August last year.

Agustiawan, pictured above, allegely told investigators that Rubiandini "once phoned her to say that Energy and Mineral Resources Minister Jero Wacik and he had agreed that SKKMigas would provide $150,000 to help ease the deliberation of the ministry’s budget at the House, while another $150,000 would be provided by Pertamina," Oil Patch Asia reported.

"The money would be given to House lawmakers who I believed were in the budget committee," Agustiawan said, according to the KPK dossier.

"I then said Pertamina would give the money directly to the House, not through Waryono, so Pertamina should not be asked for money again."

Agustiawan’s lawyer, Rudy Alfonso, said his client was a victim in the scheme. He said Rubiandini threatened to report Agustiawan to "the minister" after she turned down his request for a cash delivery for lawmakers.

During a raid at Waryono’s office in August last year, the KPK confiscated $200,000 that allegedly came from Rubiandini.

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This post appears courtesy of Oil Patch Asia.