Wednesday, November 2, 2011

Freeport defends right to pay police $14m

Freeport defends right to pay police $14m
The Jakarta Post, Jakarta | Wed, 11/02/2011 10:36 AM
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Mining giant PT Freeport Indonesia (PT FI) has denied public accusations of graft surrounding the US$14 million the company paid to the National Police to assist its operations in Papua, saying the money had been paid voluntarily.

At a press conference in Jakarta on Tuesday, PT FI spokesman Ramdani Sirait said the funds were legal under the "Voluntary Principles on Security and Human Rights," an international agreement initiated by several large companies and governments, including the US and the UK.

These principles were signed in December 2000 as guidelines for companies located in conflict areas to secure assets and vital objects by involving local public security officers.

“The cooperation between PT FI and the National Police has followed these principles,” Ramdani said.

Ramdani also said his company had been very transparent on the matter and had allowed the public to freely see the report on its website.

“We are transparent and people can access the annual report about the security money in our website,” he said.

Last year, PT FI paid $14 million for the National Police.

Ramdani said 80 percent of these funds were used to provide supporting facilities, including meals and transportation, while 20 percent was paid in cash.




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