Jakarta (AFP) – Indonesia has been accused of having a culture of corruption in the awarding of contracts for the mining of coal and gas, but the government has yet to act, a watchdog group said.
Key points:The Mining Association of Indonesia (MAI) has asked for an independent audit of the awarding processPublished: June 27, 2020 09:31:50The mining association has accused the Indonesian mining giant of awarding contracts to mining companies on a “cheap basis” that resulted in no compensation to the workersThe audit could be released as early as Monday, after the end of the yearLawyer Kudryanto says the company has “a culture of nepotism” and “poor oversight”The government is also under pressure to investigate the awarding and the possible misuse of government contracts by the mining company.
The MAI has called for an investigation into the awarding in the coal and energy sector, which could be conducted by the ministry of the environment or the Ministry of Industry, Trade and Investment (MIITI), which administers contracts.MAI president Kudyanto said in a statement on Friday that the ministry had received a request for an audit of mining contracts issued to mining contractors.
He said he hoped the audit would be completed by the end the year.MAi has urged the ministry to initiate an investigation and release the results of the audit as early at the end, as soon as possible.
“The ministry has a culture which is poor oversight.
It is not transparent, and it doesn’t follow the rules,” Kudymanto told reporters on Friday.”
We want to find out whether there are any irregularities.
We don’t have a firm date yet.
We hope the ministry will initiate an audit at the earliest,” he said.
The government has not responded to the requests for an official probe.
However, the ministry’s official press office said the ministry “does not comment on pending investigations”.
The ministry said in June that the mining giant Sinopec had awarded contracts worth $7.5 billion to seven companies for the production of coal in the Bali province.
In September, the Ministry for Energy and Mines (MET) confirmed that three mining companies had been awarded $1.9 billion worth of mining licences.
But it did not say whether they were the ones awarded on a cheaper basis or a contract awarded on the basis of “pay and conditions”.
“This issue should be investigated to the fullest extent, in line with the law,” MET’s spokesman, Loke Tengwari, told AFP.MA Iso said it had requested the ministry for an auditing in July after the ministry did not release the audit results.
“They are also looking at the issues related to the awarding processes,” said MA Iso’s chief executive, Hisham Kian.
“I am very concerned about the quality of the bidding process,” he added.
“In addition to the mining contracts awarded by the companies, there are also other contracts, including for other services.
There is also a need to have a more transparent and accountable bidding process.”MAI is also concerned about corruption and nepotistic behaviour by some companies.
It called for a “systematic review of contracts awarded in the mining sector” and said it wanted a probe into the companies involved.
In March, a parliamentary committee on public procurement ordered MET to investigate five mining companies for awarding contracts without an independent, competitive bidding process.
The committee also said a number of other companies were awarded contracts on a preferential basis without competitive bidding.
But the ministry said it did nothing to stop the contracts, which are awarded on “a ‘cheap’ basis.”
If the government was serious about transparency and accountability, it should take action on the issue,” said Kian, adding that the company would also cooperate with the committee.”
It is very unfortunate that the government is not addressing the issue, because it is a national issue.
It has a huge impact on the economy.
“The mining industry is a key source of jobs in the country of almost 10 million people, with a total of over 15 million jobs.