Monsanto has admitted that it had spent more than $700,000 to bribe a senior official in the environment ministry, a senior official in the agriculture ministry, an official in the National Planning and Development Board (Bappenas), as well as 140 other bureaucrats between 1997 and 2002.
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Monsanto lobbied me: Nabiel
Muninggar Sri Saraswati, The Jakarta Post, Jakarta
January 13, 2005
http://www.thejakartapost.com/detailheadlines.asp?fileid=20050113.A04&irec=5
Former state minister for environment Nabiel Makarim admitted on Wednesday that U.S.-based Monsanto Co., one of the world's leading developers of genetically modified (GM) crops, had lobbied him to facilitate its business in Indonesia.
"There was lobbying, but it was in line with the law. It's something common," Nabiel said after a meeting with the Corruption Eradication Commission (KPK).
Monsanto agreed last week to pay a US$1 million penalty to the U.S. Department of Justice, which charged the company with violating the U.S. Foreign Corrupt Practices Act when it bribed certain Indonesian government officials to allow it to develop GM crops in this country. It also agreed to pay another $500,000 to the U.S. Securities and Exchange Commission (SEC).
Nabiel also admitted that he had a close relationship with Harvey Goldstein, the president director of the Jakarta-based Harvest International Indonesia business consulting company, which according to KPK was hired by Monsanto to lobby the Indonesian government for legislation and ministerial decrees supporting the development of GM crops.
However, Nabiel claims that he has no knowledge of Monsanto paying bribes to employees of the environment ministry.
"No money was offered or requested (during the lobbying)," said Nabiel, who was appointed as environment minister in 2001 by former president Megawati Soekarnoputri.
Erry Riyana Hardjapamekas, a KPK deputy chairman, said that Nabiel came to his office in his capacity as a former environment minister. As minister he supposedly knew of the alleged bribery of a senior ministry official by Monsanto that occurred in 2002.
"We have yet to investigate the case, but we are currently assessing information. We consider the case serious as it must serve as a warning to other publicly listed companies not to bribe state officials any longer," he said.
The commission has met with Agriculture Minister Anton Apriyantono, who has promised to assist in the investigation of the case.
In the near future, the commission is scheduled to meet Environment Minister Rachmat Witoelar, former environment minister Sonny Keraf as well as former agriculture ministers Bungaran Saragih and Soleh Solahudin in relation to the investigation of the corruption case.
Erry also said that the commission will summon Goldstein of Harvest International, Villareal and Monagro Kimia, an affiliate company of Monsanto in Indonesia.
The KPK has already sent letters to the U.S. Department of Justice and the SEC, respectively, seeking more information about the case.
Monsanto has admitted that it had spent more than $700,000 to bribe a senior official in the environment ministry, a senior official in the agriculture ministry, an official in the National Planning and Development Board (Bappenas), as well as 140 other bureaucrats between 1997 and 2002.