Sus­pects al­legedly em­bez­zled money from West Point Ter­mi­nal project in In­done­sia

New Straits Times - - Business -


PO­LICE said yes­ter­day In­ter­pol has is­sued red no­tices, the clos­est to an in­ter­na­tional ar­rest war­rant, for three Chi­nese ex­ec­u­tives sus­pected of fraud linked to a more than US$800 mil­lion (RM3.54 bil­lion) China Petroleum and Chem­i­cal Corp (Sinopec) oil ter­mi­nal, here.

Sinopec is the se­cond ma­jor Chi­nese state oil firm in less than three years to find staff fac­ing al­le­ga­tions of cor­rup­tion in In­done­sia, where the re­sources sec­tor is rid­dled with graft and le­gal and con­trac­tual un­cer­tainty.

“The three red no­tices have been pub­lished for those wanted peo­ple,” said Na­tional Po­lice spokesman Boy Rafli Amar.

The au­thor­i­ties filed a re­quest for In­ter­pol as­sis­tance on Fe­bru­ary 21 re­gard­ing the three ex­ec­u­tives, sus­pects in the al­leged em­bez­zle­ment of an undis­closed sum of money from the West Point Ter­mi­nal project, said Amar.

He iden­ti­fied the three as West Point Ter­mi­nal fi­nance di­rec­tor Zhang Jun, chief ex­ec­u­tive Feng Zhi­gang and chair­man Ye Zhi­jun.

Chi­nese For­eign Min­istry spokesman Hua Chun­y­ing said she had seen re­ports about the red no­tices, but was not aware of specifics.

In­ter­pol’s Gen­eral Sec­re­tar­iat press of­fice said in an emailed re­sponse it did not “com­ment on spe­cific cases or in­di­vid­u­als ex­cept in spe­cial cir­cum­stances”.

A red no­tice is In­ter­pol’s high­est alert and is a re­quest to lo­cate and pro­vi­sion­ally ar­rest an in­di­vid­ual pending ex­tra­di­tion. It is not an in­ter­na­tional ar­rest war­rant as In­ter­pol can­not compel any mem­ber coun­try to ar­rest an in­di­vid­ual who is the sub­ject of a red no­tice.

De­frizal Dja­maris, a lawyer rep­re­sent­ing West Point Ter­mi­nal’s five per cent stake­holder PT Mas Cap­i­tal Trust (MCT), said MCT re­ported sus­pi­cions of fraud on the project to po­lice in 2015.

The red no­tices were is­sued be­cause the three ex­ec­u­tives had left the coun­try and “not co­op­er­ated” with lo­cal po­lice in­ves­ti­ga­tions, said Dja­maris.

The West Point Ter­mi­nal was touted to be South­east Asia’s largest and was ex­pected to be op­er­a­tional by the mid­dle of last year, but has faced a se­ries of set­backs, in­clud­ing a suit filed by share­hold­ers in Novem­ber.

The project in In­done­sia’s Batam free-trade zone to the south of Sin­ga­pore is 95 per cent owned by Sinopec Kan­tons Hold­ings, a unit of Sinopec. Reuters


In­done­sia re­quested In­ter­pol’s as­sis­tance on Fe­bru­ary 21 re­gard­ing the al­leged em­bez­zle­ment of an undis­closed sum from Sinopec’s West Point Ter­mi­nal project in In­done­sia.

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