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CSR funding from PT Freeport Indonesia has been called to question by human rights body, the National Commission on Human Rights. Officials from the gold and copper mining company have been questioned by the commission recently. Commission chairman, Ifdhal Kasim, told the Jakarta Post recently that representatives from three villages near Freeport’s operations area had filed reports with the commission, calling for transparency in the distribution of the fund.
According to the news report, Ifdhal said, “Since 1995, the company has had an agreement with the local people to
donate one percent of its gross profit to foundations to be distributed
for development projects.. The villagers want the
company to be clear on where the money goes and who receives it.”
He
added that a move by the company misconstrued as being nontransparent could
create conflict among villagers. He was reported to have said that the company was cooperative in explaining how the fund work, although he declined to say
how much money Freeport distributed every year or who received it.
Although the commission hasn't reached a conclusion, considering that it might have to question representatives from the company's foundation, Ifdhal was reported to have said that the commission hopes to resolve the provlem within a month.
Freeport Indonesia is the local
subsidiary of US-based Freeport McMoRan Copper & Gold, the world’s
largest publicly traded copper company. Freeport Indonesia
spokesperson, Mindo Pangaribuan, confirmed to the Jakarta Post that the meeting did take place. He said that the partnership fund is managed by,
the government, local customary groups, Freeport and local
figures, among others.
He was reported to have said, "We
were explaining Freeport’s community development programmes through our
corporate social responsibility, including the provision of a voluntary
fund for social development through an independent institution,” he told
the Post over the phone.
Mindo added the program and the fund were audited
annually by an independent auditor.
Besides
the partnership fund, he went on, Freeport also provided a trusteeship
fund of $1 million to the Amungme and Kamoro tribes as part of its land
rights recognition.
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