Sunday, December 16, 2007

Shareholders Reject Bonus Proposal for PGN Directors

The extraordinary general meeting of shareholders (EGMS) of the state gas distribution company PT PGN has rejected the proposal to pay some bonus to the pensioned directors, but it approved IDR900-million bonus proposal for independent commissioner.

The government, the controlling shareholder, has rejected the bonus proposal. Bonus proposal is among the subject to discuss in the EGMS yesterday. The meeting also discussed the salary for the directors and commissioners in 2007.

In the EGMS of June 6 2006 the shareholders have approved the bonus proposal of IDR6.94 billion, representing 0.81% of the net profit of 2005 as much as IDR862 billion.

Part of Grissik-Singapore undersea gas transmission pipeline operated by PT Transportasi Gas Indonesia (Transgasindo), a subsidiary of state gas company PGN, is buckled and suspected to crack. The repair work is estimated to require IDR703 billion to realize.

The crack in Kuala Tungkal-Panaran transmission pipeline on kilometer 110-133 is worried to pose huge safety risk and supply shortage threats. The buckles are found by PT Denvegraha during its inspection.

The indications of the damages were actually identified a moment after the commissioning of the pipeline in October 2003. Later, a follow-up monitoring by Transgasindo in 2005 found 18 dimensional buckles.

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