Between Sam Pa, Surya Paloh, and KPK

Friday, 16 OCtober 2015 , 16:57:00 WIB - Law

Nasdem Party head Surya Paloh (right) gives his statement to the press regarding a case that dragged the General Secretary of Nasdem Central Executive Board (DPP), Patrice Rio Capella, Jakarta, Thursday (15/10). Nasdem Party had him resigned as he found guilty in a social assistance (bansos) funds bribery case at North Sumatera High Court and Attorney General´s Office, he will accept whatever the Corruption Eradication Commission decided to do on him. (ANTARA)

JAKARTA, GRES.NEWS - Sam Pa, Surya Paloh, and the Corruption Eradication Commission (KPK) suddenly become the media's trending topic at the same time. Sam Pa is known for being arrested for being involved in a corruption case of Su Shulin, Governor of Fujian Province, China, who is also the former CEO of China Sinopec. Sam Pa was arrested on October 8 when he traveled to North Korea.

Meanwhile, Surya Paloh known after Patrice Rio Capella, the NasDem Party's Secretary General, was named as a suspect for illegally arranging the Social Assistance (Bansos) fund corruption case and also several other corruption cases involving several regional-owned businesses in North Sumatra at the AGO.

Surya Paloh and Sam Pa has the same connection on oil business. Sam Pa's company, Sociedade Nacional de Combustiveis de Angola EO (Sonangol EP) cooperated with Surya Paloh on importing crude from Angola. Pertamina found imported oil from Sonangol EP on January-June for 950,000 barrels/month.

The business tender was not transparent to public. But, Pertamina reasoned that the oil import has been signed since the 4th quarter in 2014 by PT Pertamina Energy Trading (Petral).

Daniel explained that the contract was done by business to business (B to B), not by government to government (G to G). By that, the contract was commercial.

According to the previous MoU between Sonangol and Pertamina, there were three partnership agreement: refinery development in Indonesia, oil exploration, and oil import with a 15% discount.

The Ministry of Energy and Mineral Resources claimed that they didn't know anything about their partnership on oil import.

The General Directorate's acting Director of Oil and Gas Downstream Development, Muhammad Riswi, said that they should have a legal permit from the government to import oil.

Meanwhile, the Marketing Director of Pertamina, Ahmad Bambang, said that Pertamina don't know the exact price of the oil they imported from Sonangol.

Surya Paloh and Sam Pa connection are not only on oil business. It is said that Paloh's media group had a partnership with Sam Pa on "Indonesia 1" building construction at Thamrin Street, Jakarta. The groundbreaking of the building was held by President Joko Widodo on May 23. President Jokowi said in his welcoming speech that the building construction spent Rp8 trillion, and it was a good sign for investments in Indonesia.

SAM PA'S RISKY BUSINESS - As quoted from english.caixin.com, Sam Pa was born in Hong Kong in 1958. Sam Pa nationality is Angolan and English. Sam Pa is also known for having other nicknames, Xu Jinghua, Samo Hui, Sam King, and Ghiu Ka Leung.

Sam Pa career started after he became an agent between a deal of Sinopec and Angola in 2003. Sinopec was starting to expand its business by getting contracts on oil to the other states than China.

In the same year, Pa and his partner Lo Fong-hung established China International Fund (CIF) in Hong Kong and involved in oil and mineral trade in Africa to their business partners in China.

Through their connection with China and Africa officials, Pa often gets business contracts for his company. It is said that Pa is also a brave risk-taker.

Through CIF, Pa takes the benefit from the influence of the officials and executives of oil companies to win a great business in Angola, Venezuela, Madagascar, and Zimbabwe.

His controversial high-profile business made his company, CIF, had an issue with having a connection with China government. But, China's Foreign Affairs Minister confirmed that they have no connections. China government officials said that CIF is a private company with no connection to the government.

But, it got revealed after Pa is known having a connection with Su Shulin when he became Sinopec General Manager in 2007-2011.

After several years, Pa and CIF use the same business model in Africa by distributing the loans from China government banks through Pa's company to help the states in Africa that are rich in minerals to develop the infrastructure. As a reward, CIF got the oil and minerals to sell to China.

In 2005, CIF announced that they lent US$2.9 billion to Angola government to rebuild the infrastructures. In the same year, a joint venture company in Hong Kong that involve CIF, and Angola state-run oil company announced that Sonangol become the crude sales broker from Angola to China. Since then, Angola becomes the number 1 oil source for China.

On the next year, CIF network acquired dozens of Angola oil field and diamond mine concession in Zimbabwe and a mining area in Guinea that has the most iron ore in the world and bauxite reserves.

Sam Pa and Su Shulin connections had been traced since 2004 when he established a joint venture company with Sonangol, which are China Sonangol International Holdings Ltd. (CSH) and China Sonangol International Ltd. (CSI). Pa owns 70% of the companies' shares.

In the same year, CSH and Sinopec Overseas Oil & Gas Ltd (SOOGL), Sinopec subsidiary, established a joint venture named Sonangol Sinopec International (SSI), where Sinopec owns 55% of the shares.

Su Shulin was an executive in Sinopec and known to visit Angola using Sam Pa's private jet. Since then, Sinopec has the shares of five offshore oil drilling in Angola through a partnership with Pa's company.

The partnership between them is being investigated as it is known to cause losses to China. In every contract, Sinopec is known always to pay Pa's capital and handles most of the business risks.

Sinopec is also known to pay for commissions and pay Pa's and other Pa's company executives daily expenses.

On March, China government Supreme Audit Agency stated that Sinopec has spent US$10 billion to purchase five blocks of oil fields in 2008, but it didn't produce much oil and caused them to lose US$1.6 billion.

GUESSING SURYA PALOH DIRECTIONS - Sam Pa's corruption case in China has nothing to do with Surya Paloh in Indonesia. But, people are keep connecting Sam Pa's fate with Paloh's for being troubled by a corruption case.

Moreover, the Corruption Eradication Commission (KPK) didn't stop at Patrice Rio Capella. From the information gathered by gres.news, Rusli Paloh, Surya Paloh's brother, is said to be involved in the case. Rusli is said to help Gatot and rewarded a position in North Sumatera Provincial Government. (dtc)

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