Ginandjar's role in alleged graft to be probed

Attorney General Marzuki Darusman said on Wednesday his office would continue investigations into alleged corruption in the renewal of PT Freeport Indonesia's mining contract and the awarding of a power purchase contract to PT Paiton Energy.

Marzuki, in a hearing with the House of Representatives Commission VIII said that his office would make further investigations to determine the involvement of former minister Ginandjar Kartasasmita and other parties in the alleged corruption.

The hearing was held after the commission's hearing with Ginandjar in the morning.

Freeport operates a huge copper and gold mine in the Grasberg area in Irian Jaya. It received its mining contract in 1967 and renewed it in Dec. 30, 1991.

Paiton Energy, which is owned by, among others, American energy firm General Electric and Mission Energy, operates a giant coal-fired power plant in Probolinggo, East Java. It is the first independent power producer to sign a power purchase contract with state electricity company PT PLN.

Ginandjar served as minister of mines and energy when Freeport renewed its contract and Paiton Energy was in the process of securing a deal with PLN.

Marzuki told legislators that his office had discovered indications of corruption in the deal between Freeport and ICICI, a subsidiary of the Bakrie Brothers group, allowing the latter to acquire a stake in Freeport.

Regarding Paiton's case, Marzuki said his office had found indications of corruption in the awarding process of the power purchase contract to Paiton Energy.

Ginandjar maintained his innocence during the hearing with the commission. (*)