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Activists ask for Freeport's TNI payments to be audited

Source
Tempo Interactive - December 31, 2005

Jakarta – NGO activists consider think that the security of foreign companies such as Freeport McMoran must be provided as a compensation for tax payments to the state.

"The obligation of Freeport to pay taxes in turn obligates the state to provide and guarantee the security of the company," Usman Hamid, coordinator of the Commission for Missing Person and Acts of Violence told reporters in Jakarta on Thursday (29/12).

Hamid was responding to a recent report released by The New York Times that Freeport, a gold and copper mining company in Papua, allocated US$20,000 to Indonesian Military (TNI) officers and institutions and the National Police.

Freeport considered this normal to guarantee the security of tens of thousands of its employees.

According to Hamid, as an institution, it was not correct for the TNI to allow its officers both active and non-active to receive illegal funds from Freeport.

"This has indicated bad management by the government, the security apparatus and private companies like Freeport," he stated.

Therefore, Hamid has urged the carrying out of an audit at Freeport in order to identify the allocation of company funds in relation to security service provided.

If Freeport were found not to be involved, he stated, the TNI must carry out an internal investigation, "It's not enough just to deny the matter."

According to Hamid, TNI commander General Endriartono Sutarto must trace any embezzlement that might have been carried out by TNI officers or personnel, and identify those involved. (Fanny-Tempo News Room)

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