[ppi] [ppiindia] TNI admits to accepting cash from Freeport

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http://www.thejakartapost.com/detaillatestnews.asp?fileid=20051229144403&irec=2

TNI admits to accepting cash from Freeport 

 

JAKARTA (AP): The Indonesian Military (TNI) acknowledged for the first time 
Thursday that its commanders in West Papua had received "support" from a U.S. 
gold-mining giant -- responding to allegations that Freeport-McMoran Co. gave 
the army millions ofdollars to protect its facilities in the remote province. 

TNI spokesman Maj. Gen. Kohirin Suganda said the armed forces "as an 
institution" had never received donations from the New Orleans-based company. 

"But we have heard that Freeport provides support such as vehicles, fuel and 
meals directly to the units in the field," Suganda said. "That's the company's 
policy. It was not done because we requested it." 

Kohirin was responding to an article published Tuesday in The York Times that 
detailed Freeport-McMoran's alleged payments of US$20 million to military 
commanders in the area in the last seven years. 

Indonesia regularly ranks among the world's most corrupt countries in 
international surveys. The latest reports will do little to raise confidence in 
the army -- considered one of the country's most graft-ridden institutions -- 
or the government's pledge to eradicate official corruption. 

Human rights groups have criticized direct payments by foreign mining and 
energy companies to the military, saying they were undermining efforts to bring 
the politically powerful armed forces under civilian command following the 
collapse in 1998 ofthe 32-year military dictatorship of former President 
Soeharto. 

Only one-third of the financing for Indonesia's armed forces comes from the 
state budget, while the rest is collected from non-transparent sources such as 
"protection payments," allowing the military brass to operate independently of 
the government's financial controls. 

When asked about the payoff allegations, TNI chief Gen. Endriartono Sutarto 
would only say, "Please ask Freeport, not me." 

A Freeport spokesman in Jakarta said the only company official who could 
comment on the matter was busy in West Papua. 

Reports that Freeport was paying off the military to protect the mine have 
circulated for years. (***) 


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