http://www.worldnetdaily.com/bluesky_smith/19991019_xcsof_where_corr.shtml In October 1999, Indonesia's state-owned electricity company, PT Perusahaan Listrik Negara (PLN) filed suit to cancel a Clinton sponsored electric power project, claiming the arrangement was "full of elements of corruption, cronyism and nepotism." The PLN allegations of criminal activities surrounding an Indonesian power plant are backed by documented evidence. The Clinton administration documented the Suharto family kick-backs inserted into an American taxpayer funded power project for Indonesia. The $2.5 billion Paiton electric power plant in East Java that is under dispute is 40%owned by California-based Edison Mission Energy Co., a unit of Edison International, 32.5% owned by Mitsui & Co., and 12.5% owned by a unit of General Electric Co. According to Commerce Dept. documents, 15% of Paiton is held by an Indonesian group led by businessman Hashim Djojohadikusumo, whose brother is a General in the Indonesian Army and the son-in-law of former President Suharto. The documentation shows that a ".75%" ownership in the Paiton power plant was given to the daughter of Indonesian President Suharto. In 1999, the State Dept. partially released classified documents on the corrupt activities inside Indonesia. Several documents were withheld by the Clinton administration for "national security" reasons. This reporter is currently appealing the State Department ruling. One State Dept. document released was not to be declassified until 2016. The document is a cable from Clinton's Ambassador to Indonesia, J. Stapleton Roy. In 1998, Ambassador Roy wrote "on power projects, corruption, draft laws and the new Director of Pertamina." The December 1998 cable includes a discussion between U.S. Ambassador Roy and an individual whose name was withheld for national security reasons. The cable states that the unnamed individual "stressed that solutions to the problem must be simple to convince 'the people' that corruption, collusion and nepotism ('KKN') are being dealt with properly." The term "KKN", a shortened Indonesian phrase that translates into "corruption, collusion and nepotism," appears several times inside the December 1998 message from Ambassador Roy. The unnamed individual "hinted" that the "rescheduling plan presented by Edison Mission Energy executives was 'too complicated. He added that 'it has to be simple in order that I can explain it to the people. The public thinks that all IPP's (independent power producers) are linked to KKN, so I need to have a simple plan to sell to them.'" Ambassador Roy also focused on the close connections between corruption, the Indonesian Army and the current Indonesian President Habibie. According to Roy's 1998 cable, the unnamed individual "said that the draft oil and gas law is currently with the State Secretariat (SEKNEG). He expects it to be finalized this month and go before the Indonesian parliament (DPR) in January. He said that those that are not happy with the new law - - including Pertamina, the Army and some members of the Indonesian parliament (DPR) - - have 'vested interests' in the current system." Despite the frantic cable from Roy, the Clinton administration already knew about the bribes built inside the Paiton power project as early as 1994. According to a declassified document, obtained from the Overseas Private Investment Corporation (OPIC), U.S. legal teams were concerned about the Suharto family involvement. In October, 1994, OPIC legal counsel Peter Ballinger wrote a memorandum that closely reviewed the problems with the Paiton project. According to Ballinger, "There are two relatives involved in the project, President Suharto's second daughter, Siti Hediati, and her brother-in-law, Hashim Djojhadiksumo. They have a combined interest in the Paiton project of 2.5% through their investments in one of the project Sponsors, P.T. Batu Hitan Perksasa." "In addition," wrote Ballinger. "They have a minor ownership in two of the companies involved in the coal supply chain. While their interest in the project is small, it will be subject to further due diligence in the finance and legal review process." The due diligence review ended in 1995 with the Asian Development Bank (ADB) refusing to finance the Paiton power project because of the "Suharto" first-family concerns. In response, President Clinton frantically put together a consortium of U.S. and Japanese banks to finance the deal, complete with the kick-back to Suharto's family. Paiton was so important to Bill Clinton that he pressed for personal letters from Ron Brown and then Indonesian Ambassador Barry. One such memorandum was directed to a former Democrat candidate. In 1995, then Indonesian Ambassador Barry, wrote to former Vice President Walter Mondale, seeking help from Japan. In a February 1995 cable to Ambassador Mondale in Tokyo, Barry wrote, "I would like to ask your support for a project that is expected to generate over half a billion dollars in U.S. exports... This 2 billion dollar is the first major private power project in Indonesia and is a splendid example of cooperation between both the private and public sectors of the U.S. and Japan." "The board of Japan EXIM will consider its portion of the funding package for Paiton this week," wrote Barry. "Would you be able to convey the USG's strong support for this project to JEXIM? I appreciate your help." Moreover, the Clinton administration was banking on Indonesian corruption to save the U.S.-funded power projects. According to a 1998 State Dept. cable, Indonesian authorities had increased their electricity purchases from the U.S. sponsored Sengkang power plant built by El Paso Energy. The increase, however, was due to an unusual reason. "The increased take from Sengkang can be attributed to shortages of diesel fuel," wrote Ambassador Roy in an August 1998 cable. "The near-by private plant located in Pare-Pare as well as PLN plants in south Sulawesi are currently set to run on subsidized diesel fuel. The subsidized fuel, however, is reportedly being smuggled to Singapore where it fetches double the price." In 1999, the Commerce Dept. withheld materials on the Paiton power plant sought by the Freedom of Information Act (FOIA). Commerce legal officers determined that documents could be withheld from the public, pursuant to commercial and personal privacy reasons. However, the Clinton administration cannot withhold known criminal activity involving illegal payments made to the Indonesian government, Indonesian officials or relatives. The Freedom of Information Act (FOIA) does not include criminal activity as a legal exemption from release, except when dealing with an ongoing investigation by law enforcement. And despite the documented evidence, Janet Reno and the Dept. of Justice are not interested in investigating the Paiton project. No FBI, SEC, nor Congressional investigation has been opened. The illegal use of U.S. taxpayer monies for bribes and kick-backs is a violation of several Federal laws, including the Foreign Corrupt Practices Act and RICO laws concerning bribery of government officials. Foreknowledge of such actions can also be considered a crime under Federal conspiracy laws. The Clinton administration refusal to release documents dealing with criminal activity could be considered itself a deliberate criminal act to coverup the bribery of Indonesian officials. This reporter appealed the Clinton administration's denial, citing as evidence many of the documents quoted here. In October 1999, the Commerce Dept. reviewed the appeal and ruled in favor of a further release. The Clinton administration now states that more documents will soon be made public. Despite delays, the Indonesian power company PLN has filed suit using documents found by this reporter as evidence. In fact, the U.S. legal representatives for the stockholders in the Paiton project have requested and received copies of the documents revealed here in WorldNetDaily. The Clinton administration cannot stall much longer. U.S. and Indonesian Courts will soon view evidence of corruption, collusion and nepotism. Time is rapidly running out for President Clinton and forces on both sides of the Pacific are now closing in. ================================================================ source documents - http://www.softwar.net/paiton4.html ================================================================ Pcyphered SIGNATURE: 439A268FD8E81C3D1C1D2BD5B58F05BE85CCD5BCB729B7D6B485FB8B3D375DEB 5AD8600374086C2BC2E85E186BEE15B4E4B0FB8512EB38617CD9D62C9C647FD2 4B94F4A3A001A530 ================================================================ SOFTWAR EMAIL NEWSLETTER www.softwar.net 10/19/99 *** to unsubscribe reply with "unsubscribe" as subject *** ================================================================
