Chaotic settlement of Lapindo mudflow
It's pretty much like the hot mud flow itself. Various teams have been established, regulations have been deliberated, studies have been conducted, audits have been done, but still the victims of the mud flow in Porong, East Java can't see the light. It's the owner of the block that had been shown the lights.
The Supreme Audit Agency (BPK) has just disclosed its audit report on the mud flow. BPK asked government to immediately declare (formally) that the mud flow is a disaster (but not a natural disaster as suggested by a group of scientists few months ago).
The conclusion: The state should bear the costs first to be reimbursed later on if the state could prove that someone should be responsible for that. To prevent future legal problems, the agency proposed to government to have written commitment from Lapindo owners. While this is a dangerous game, considering our history in making such deals with big business groups, I suggest government to do the following:
1) Identify the assets, as many as possible, more than enough to cover the estimated cost of the mud flow settlement.
2) Make sure that the owner of those pledged assets should not change hands.
These steps would be better than government's decision to simply ask all of us to share the burden of the disaster. Why? Because the burden on our shoulders apparently will be 95% and the Lapindo owners for only a small fraction under the existing presidential decree. BPK said the cost of the mud flow would be more than US$3 billion, while the responsibility dictated by the president decree on Lapindo owners is well below US$200 million.
READ MORE!!!
The Supreme Audit Agency (BPK) has just disclosed its audit report on the mud flow. BPK asked government to immediately declare (formally) that the mud flow is a disaster (but not a natural disaster as suggested by a group of scientists few months ago).
The conclusion: The state should bear the costs first to be reimbursed later on if the state could prove that someone should be responsible for that. To prevent future legal problems, the agency proposed to government to have written commitment from Lapindo owners. While this is a dangerous game, considering our history in making such deals with big business groups, I suggest government to do the following:
1) Identify the assets, as many as possible, more than enough to cover the estimated cost of the mud flow settlement.
2) Make sure that the owner of those pledged assets should not change hands.
These steps would be better than government's decision to simply ask all of us to share the burden of the disaster. Why? Because the burden on our shoulders apparently will be 95% and the Lapindo owners for only a small fraction under the existing presidential decree. BPK said the cost of the mud flow would be more than US$3 billion, while the responsibility dictated by the president decree on Lapindo owners is well below US$200 million.
READ MORE!!!
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