04/03/08 09:30Government urged to lodge stern warning to parties opposing Newmont divestment
Jakarta (ANTARA News) - The government should lodge stern warning to any party for funding non-governmental organizations (NGOs) in committing counter-divestment actions of the shares of PT Newmont Nusa Tenggara (NNT), a legislator said.
"If there is sufficient evidence that NNT had encouraged NGOs to carry out counter-divestment, the government should give a stern warning," Tjatur Sapto Edy, a member of the House of Representatives (DPR)`s commission VII, said here Wednesday.
He said further that the government should be consistent in setting the deadlines for divestment after making a decision on NNT`s negligence.
Report said, the government had taken preliminary measures in seeking international arbitration over Newmont`s failure to divest 10 percent of its shares by February 22, 2008 as stipulated in its contract.
Should NNT fails to meet the deadline, the government has to set stop its operations and terminate its contract, he said.
In line with such the measures, the government should cancel its law suit with the International Arbitration, so the dispute could be domestically handled.
In addition, Airlangga Hartarto, the Commission VII chairman also reminded the government not to respond to the divestment offer of NNT`s share in 2008 for seven percent until the completion of arbitration process.
According to him, the government had better expedite the divestment process of NNT`s share for three percent in 2006 and seven percent in 2007.
In the meantime, Sayed Junaedy Rizaldi, general chairman of the Barisan Suara Muda Indonesia (Indonesian Younger Generation Voice
Front) expressed disappointment about the planned action of rally to protest the divestment, because it is not in line with Newmont`s wish to settle the dispute properly.
Rizaldi also warned the NNT to abide by the government`s policy in the execution of the divestment in line with the agreement laid down in the contract of work.
"Nothing is difficult in the divestment, because it will be implemented in stages," he said.
Previously the management of PT. Newmont Nusa Tenggara (NNT) dismissed allegations that it has been funding some non governmental organizations (NGOs) for counter-divestment action.
Kasan Mulyono, spokesman for the company, said the allegations were totally groundless. There was no relation between counter-divestment action and Newmont.
"Allegations that Newmont has been funding some counter-divestment activities are totally wrong and groundless. We never had any relations with the NGOs concerning the divestment issue.
According to him, Newmont had hired part-time and full-time consultants on the basis of their respective expertise including under their contacts with NGOs.
However, he added, it had nothing to do with the divestment issue except certain tasks in the activities with the public.
He further said that the consultants and NGOs were hired to handle community development programs on the education, agriculture, healthcare and community-related sectors. (*)
