Farouk Arnaz – The National Police Chief said on Friday that tens of million of dollars funneled to his institution by mining giant Freeport Indonesia were disbursed as "meal money" and hardship duty funds for officers stationed at the Grasberg mine in Timika, Papua.

Gen. Timur Pradopo denied that the payments – totalling at least $74 million between 1995 and 2010 – were used to pay for security around the strike-hit mine, where eight people have been killed this month in car ambushes and police clashes

"All operations, security operations projects, are funded by the state. If the people whom we give protection to give meal money directly to the our officers, I think it is accountable," Timur said.

His denial was in response to a statement by Freeport, published on its Web site, that the mining company gave $64 million in support costs for "government provided security" between 1995 and 2004. The company says it has continued to supply funds to the government since then, paying out $10 million in 2009 alone.

Timur said that the money was given by the National Police to officers directly in the field, and that the payments had never been discussed with any other government body. He insisted, however, that the funds had been carefully tracked internally.

"The money was audited, just ask the [National Police's] Operational Assistant [about the amount of the money]," Timur said, adding that there would be no sanctions for officers who had received the hardship duty funds from Freeport.

"Once again, it is an additional fund because the situation is difficult there. It is just an operational fund, just like any other operations," he said.

Asked whether he was concerned if the "meal money" would affect the ability of his officers to remain objective during the frequent disputes between locals and the mine, Timur only replied: "Once again, it happens in the field and the fund is given directly to the officers to fulfill the needs of a hard life."