http://www.worldnetdaily.com/bluesky_smith/20000105_xcsof_indonesias.shtml In 1994, President Clinton signed a trade agreement to supply Indonesia with electric power using U.S. taxpayer loans. The trade agreement was worth billions to U.S. corporations such as Mission Energy and General Electric. "As markets expand, as information flows, the roots of an open society will grow and strengthen and contribute to stability," stated President Clinton during the 1994 signing. Five years later, in December 1999, Indonesia opened a criminal investigation of the Clinton administration sponsored electric power plants using documents first published by WorldNetDaily. The documents were obtained by this reporter using the Freedom of Information Act and were provided to the Indonesians at the request of their legal counsel. According to the Indonesian Financial Control and Development Agency (BPKP), the Clinton administration documents detail "corruption, collusion and nepotism" at the Power Generating Project Paiton I (PLTU), located in East Java. The Executive Director of the Indonesian state power company PT PLN confirmed that a report has been prepared by the Indonesian government on the criminal activity. "Yes, it's true," stated Director Tung Gono. "We have asked BPKP to look into two items. First, concerning a cluster of 27 private power projects, second, concerning 27 project implementations. The report has just come in." Some 14 officials, who handled the agreement at the time, are now suspected of facilitating or providing special treatment to an economic unit connected to the power plant. The Paiton power plant in East Java is owned by Japan's Mitsui Electric, U.S. based Edison Mission Energy and General Electric, and an Indonesian firm PT Batu Hitam Perkasa that is controlled by local millionaire Hashim Djojohadikusumo. Mr. Hashim is closely tied to the former dictator of Indonesia, President Suharto. Mr. Hashim's brother is married to Suharto's youngest daughter, Ms. Prabowo. Ms. Prabowo is also a part owner of the Paiton power plant. Hashim's father was also a close friend of Suharto and a former economic minister to the Indonesian strongman. Bill Clinton is also closely tied to former dictator Suharto. Declassified State Department cables from U.S. Ambassador J. Stapleton Roy note that the Paiton I electric project was of extreme importance to Clinton's Secretary of State. The Clinton administration documents openly state that "Warren Christopher is on Edison Mission's board of directors." "Paiton Energy President Ronald Landry provided the IPP's (independent power producers) with an overview of former Secretary of State Warren Christopher's visit to Indonesia," states a 1998 U.S. embassy cable from Roy. "Mr. Christopher, representing Edison International's board, was here to launch a proposal." According to Paiton CEO Landry, Christopher "spoke on behalf of the IPP's" when he said that any solution reached with Indonesia must: - Be a 'Win-Win' solution and not 'embarrass' Indonesia; - Protect the USG, other government agencies and the financial community; - Maintain debt coverage and the sanctity of the contract - Focus on financial rather than legal issues." One document, an October 1998 State Dept. cable from the U.S. Ambassador to Indonesia, J. Stapleton Roy, notes that Indonesian Director General of Electricity Endro Utomo Notodisoerjo commented on "corruption, collusion and nepotism (KKN)." "Endro said that in the past there was no separation between 'power' (not electric but former first family power) and business. 'All the IPP's have a relation with power, and it is still going on,' added Endro," states the cable from Ambassador Roy. Despite the overwhelming evidence of criminal activity, according to Paiton's president Ronald Landry, the U.S. controlled power company preferred to resolve the issue through negotiation. "Unfortunately, it has become clear to us by PLN's pursuit of this undeserving suit that PLN is not sincerely interested in negotiation," said Landry in a December 1999 press announcement. The announcement of a criminal investigation into the Paiton project came after the Central Jakarta district court ruled that it had jurisdiction to examine the legality of the purchase contract between state electricity company PT PLN and independent power producer PT Paiton Energy. The Indonesian court turned down Paiton's proposition that the court did not have the right to examine the case, and that international arbitration should settle the matter. Paiton had argued that the purchase agreements signed by both parties in 1994 required all disputes be resolved through international arbitration in Stockholm. Indonesian legal counsel, Adnan Buyung Nasution, argued that the contract was void ab initio or "void from the beginning." Buyung stated that the contracts were invalid and based on the "corrupt, collusive and nepotistic practices associated with the administration of former president Suharto." Buyung said that despite the stipulation that all disputes would be resolved through an arbitration court, the contract contained the requirement that Paiton was subject to Indonesian laws. The Paiton company began the arbitration litigation after the Indonesian state run electric company PLN filed suit in the Central Jakarta court in 1999. Paiton dropped the proceedings after the court ordered it to desist from pursuing the litigation. The Indonesian court threatened Paiton with a $600 million penalty if it did not comply with the ruling. Paiton's lawyer, Frans Hendra Winarta, said the court's ruling would discourage foreign investors from investing in the country. "Paiton Energy is deeply disappointed by the decision," Frans said in a statement for the press. However, not everyone was disappointed in the court's decision. "It is a landmark decision," stated PLN president Adhi Satriya. The Indonesian court decision and the criminal investigation are based, in part, on the documents obtained by this reporter. In 1998, the Commerce Department returned a "blacked-out" version of a document that it had previously sent in full. The mistakenly released document from the Commerce Department, titled "Indonesia Advocacy Projects", contained information on the privately held east Java Paiton Power Plant. The November 1994 Commerce Department advocacy document shows the Indonesian Paiton project encountered difficulties with financing because the Asian Development Bank (ADB) knew it also contained a Suharto family kick-back. Suharto's son-in-law, according to the U.S. government advocacy document, was known to be a shareholder in P.T. Batu. "Ambassador Barry stated that the project is facing two problems," noted Commerce officials on the Paiton project status document. "(i) the ADB financing may cave in and (ii) EXIM financing. Regarding ADB, technical questions have been satisfied, but ADB is skiddish about involvement of Indonesia's first family (a minority shareholder is married to Pres. Suharto's daughter)." In 1994, Ron Brown was aware of a crime in progress. Brown knew that Indonesian Dictator Suharto had cut his son-in-law into a kick-back scheme, involving U.S. tax money. The documents show that Brown was not only aware of Suharto's corrupt activities but also quietly co-operated by seeking U.S. backed financial aid for the project. The Clinton Commerce Department tried to conceal evidence and hide the facts. On June 7, 1999, the Commerce Department refused to release all the information on the Indonesian "Paiton" power plant, citing "commercial" privacy. Many of the documents released by the Clinton administration contained whole sections blacked out for "privacy" reasons. However, mistakes were made. Once again, the complete copy of a document previously blacked out as secret by the Clinton administration was provided in full. The critical section blacked out by Commerce officials states: "First Family Involvement: ADB had raised concern about first family involvement during its consideration of the $50 million." The 1999 Commerce Department attempts to black out evidence clearly demonstrate that the Clinton administration fears the truth. The documents show a premeditated effort to conceal criminal activity. The blacked out documents show that corruption, collusion and nepotism continues inside the Clinton administration. ================================================================ source documents http://www.softwar.net/kkn.html ================================================================ Pcyphered SIGNATURE: 1BF25E37905004155345A04C7D260D964D945DC470C1BFCEEC5D603475CF5503 1280D76B0FEDE2F1BCB140DE2EA39E2D2C19F3ADDAB3B019BB31DF35C5B0E764 0A65FC4BE857145B ================================================================ SOFTWAR EMAIL NEWSLETTER www.softwar.net 01/05/00 *** to unsubscribe reply with "unsubscribe" as subject *** ================================================================
