FYI,

----- Forwarded Message ----
From: Lauti Sutedja <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]
Sent: Monday, June 16, 2008 11:46:01 AM
Subject: [Geologi UGM] PINOKIO vs Cost Recovery Claims

Berita dari The Jakarta Post nih !!!
  
  HAYOOO..... apa hubungan Eksplorasi Migas ama Pinokio ???? Bingung kan ??!!! 
Jangan - jangan Pinokio dah jadi geologist ya??
  
  Gimana sih sebenarnya nentuin klaim cost recovery ? Asyik juga ya bisa 
masukin biaya entertainment dan ongkos Umroh ke klaim cost recovery. Belum lagi 
ngasih sumbangan kok dimasukin klaim. Niat nyumbang nggak seehhh ??!!!
  
  
  Dari The jakarta Post :
  Claims include Pinocchio DVD, golf clubs, dance class, charities
  Wed, 06/11/2008 10:37 AM  |  Business 
  It's hard to directly relate oil and gas operations to a DVD of Pinocchio, 
the wooden puppet whose nose grew longer every time he told a lie. 
  But the DVD, along with other expenses for wine, parties, golf clubs, dancing 
courses, charities and even Islamic haj pilgrimages to Saudi Arabia are among 
the costs oil and gas contractors submitted for government rebates in 2005. 
  In an audit of the 2005 accounts of several oil and gas concessions belonging 
to Total E&P Indonesie, ExxonMobil Oil Indonesia Inc. and Chevron Indonesia, 
the Supreme Audit Agency (BPK) found around US$16 million in questionable 
claims. 
  The claims were all related to community development, training and education, 
sports and recreational activities and sponsorships. 
  "There are numerous items which should be excluded from the cost recovery 
provision. For example, costs for community development. The firms seem to be 
generous but at the end of the day they pass on the bill to the government," 
said BPK senior auditor Widodo H. Mumpuni. 
  In the audit of Total's Mahakam Block operation in Kalimantan, the BPK found 
some $2.62 million and Rp 9.46 billion ($1.02 million) in spending related to 
community development, training and recreation. 
  Aside from the Pinocchio DVD, Total filed cost recovery claims for a water 
skiing boat engine, diving, recreation, French film festival sponsorship, HIV 
campaign, dancing teachers and farewell parties. 
  Total spokeswoman Judith J. Navarro-Dipodiputro refused to comment on the 
findings, saying BPMigas was more authorized to respond. 
  In the BPK audit report, the firm said the expenses were aimed at employee 
development under its "macro strategy" to improve worker and family welfare. 
  The company also said BPMigas had approved some of the spending. 
  "Although the amount is small compared to the billions of dollars the oil and 
gas contractors contribute to the state, there is an issue of appropriateness 
here," said analyst Firdaus Ilyas of Indonesian Corruption Watch (ICW). 
  "For the contractors, costs for the luxuries are just peanuts. But for 
millions of poor Indonesians they mean a lot. Such claims have reduced the 
government share of the oil proceeds, which could be used for building 
schools," he said. 
  In its audit, the BPK also found some $217,587 of questionable expenses 
claimed by ExxonMobil's B Block, NSO Block and Pase Block for community 
development, which included funds for workers to play golf, bowling and 
farewell parties. 
  ExxonMobil spokeswoman Deva Rachman didn't reply to The Jakarta Post's 
written requests for clarification. 
  However, the company said in the BPK report that BPMigas had approved such 
costs. 
  Other BPK findings include claims for charitable expenses. 
  Chevron's operation in East Kalimantan, for example, obtained a rebate for 
$19,650 in charities for the tsunami disaster in Aceh and Nias in 2005, saying 
such claims were possible under its work contract with the government. 
  "Most of the companies brought their flags to Aceh to give away to charities. 
They made their name known, but later they asked the government to pay them 
back. So they were not contributing at all," said Widodo. 
  The charities were part of Chevron's $9.55 million in expenses that the BPK 
categorized as nonrecoverable as they were spent for activities not directly 
related to operations, such as for sports, training for expatriate workers and 
accounting services. 
  However, Chevron agreed to exclude from the claims only $492,430 for the 
accounting expense and $44,780 for the training. 
  The BPK also highlighted problems of open clauses in the contracts and in the 
regulations for benefit packages and working requirements for expatriates. 
  In 2005, Chevron spent some $1.22 million on expatriates who were no longer 
involved in its Indonesian operations, according to the BPK report. 
  Some expenses were even allocated for workers who never worked here, it said. 
  Not until the BPK found such irregularities did Chevron agree to exclude them 
from its cost recovery claims. 
  "If the BPK had not spotted the irregularities, the companies might have 
walked away free," said Widodo. 
  In its written statement to the Post, Chevron said it was subject to the U.S. 
Foreign Corrupt Practices Act, which functions as its internal control. 
  In response to all the findings, BPMigas deputy chairman Abdul Muin said the 
BPK should not make a big deal of such spending as the contributions of the oil 
firms to the state were far bigger. 
  "For some cases, I agree the expenses are not appropriate. But the BPK should 
not focus on these kinds of things, which are of course, very unpopular among 
the public. They should go for the big one instead," he said, adding that it 
was not in the interests of big oil and gas contractors to abuse the cost 
recovery mechanism. 
  Chevron also said the "issue should not be looked at in a piecemeal fashion". 
  Chevron said it had numerous community development initiatives that were 
funded by its parent company, Chevron Corporation, such as for environmental 
and education programs. 
  Following the 2004 tsunami, for example, Chevron provided assistance through 
the Chevron Aceh Recovery Initiative for the rehabilitation of Nanggroe Aceh 
Darussalam and Nias Island, where funding of $14.7 million was exclusively 
provided by Chevron Corporation, thus not from the government's cost recovery 
fund. 
  -- JP/Rendi Akhmad Witular, with additional reporting from Ika Krismantari

      

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