AROUND THE COURTS

A FAR-reaching corruption scandal among senior Brunei Shell Petroleum (BSP) staff has emerged as the manager of Musfada Enterprise, one of BSP's vendors, was charged yesterday with bribing officers from the oil and gas giant with cash, electronics, flights and hotel stays totalling over $1.2 million.

The BSP staff implicated in the scandal range from an assistant storekeeper who allegedly received $119,250 over three years to a senior operations manager in the Production Operation Department who was allegedly gifted return airfares and hotel accommodation in Kuala Lumpur and Langkawi.

Court documents state that Musfada's manager, David Chong, offered kickbacks to BSP employees in return for their help in procuring the order, purchase or delivery of goods from Musfada Enterprise to BSP and Brunei Liquified Natural Gas (BLNG).

Chong is facing 37 counts of corruption, with each charge carrying a maximum penalty of seven years jail and a $30,000 fine under the Prevention of Corruption Act. He has yet to enter a plea.

Deputy Public Prosecutor Pg Nina Jasmine Pengiran Laila Kanun Diraja Pg Hj Bahrin told the court that the defendant made the 37 alleged inducements between 2006 and 2009, sometimes using his employees as middlemen to deliver the bribes.

Among the other gratifications were return tickets to Bangkok, accommodation at The Empire Hotel and Country Club, Royal Bintang Hotel in Kuala Lumpur, Waterfront Hotel in Labuan, HP and Acer laptops, a Nikon Camera and cash gifts ranging from $6,050 to $119,250.

Investigations by the Anti-Corruption Bureau (ACB) put the total figure of bribes at $1,286,478.

The defendant, who is represented by Roy Prabakaran, has been ordered to report to ACB every fortnight and not to approach any prosecution witnesses. He has been released on $200,000 bail and his passport impounded, preventing him from leaving the country.

The scandal has touched some of the upper echelons of BSP with senior officers implicated including the Head of East Planner, Head of BGO, Head of Health, Safety and Environment Administration, Project Materials Coordinator, a stock analyst and buyer, and supply chain management staff.

It is unknown at this stage whether the 27 BSP employees implicated in the case will be charged in court and whether they are still employed by the company.

In recent months, the government has questioned BSP's business integrity and tender process, with the Energy Minister Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia Dr Hj Mohd Yasmin Hj Umar stating that the same five companies monopolise BSP contracts, leaving small to medium enterprises (SMEs) out in the cold.

Purported contract leaks and lack of transparency in the tender process has lead smaller vendors to allege corruption among the highest ranks of the oil and gas firm.

At press time, calls to BSP were not returned. The case will appear in court again on March 31.

The Brunei Times