Widya Purnama, who was named Pertamina president last week, said he had no intention of abiding by the Swiss-based International Arbitration Court ruling to pay 261 million dollars to the part US and Japan owned Karaha Bodas Company. "Pertamina will not pay the claim of Karaha Bodas because elements of corruption have been found," he told a press conference. The dispute centres on a 380 million dollar geothermal energy project in West Java that was suspended in 1997 as Indonesia's economy floundered during the regional financial crisis. Officials said that the closure complied with advice from the International Monetary Fund, which was invited to help overcome the crisis. The move however prompted Karaha Bodas's US investors to file a lawsuit. Its shareholders, among others, are Florida Power and Light and Caithness, Tomen Corporation-Japan in partnership with local company Sumarah Daya Sakti. Purnama did not elaborate on the corruption allegations but said police were investigating. Sources close to Pertamina have said that Karaha Bodas allegedly obtained the project in 1994 through direct appointment, in violation of a presidential decree requiring a tender process for all state-funded ventures. It also allegedly violated another presidential decree issued in 1992 by setting up electricity selling prices in dollars instead of rupiah, they said. Purnama said that Pertamina would conduct an investigative audit on all its ventures, including the Karaha Bodas project, adding that it has contracted international audit firm Ernst and Young. PIN//AFP