Bambang denies misusing funds

JAKARTA (JP): Bambang Trihatmodjo, the second son of former president Soeharto, denied on Tuesday allegations that charity funds controlled by his father had been diverted into business interests.

Bambang denied that there had been any movement at all when asked whether assets or funds of the Dana Sejahtera Mandiri foundation, of which he was treasurer, had gone to business interests.

He was questioned for almost three hours at the Attorney General's Office where he was accompanied by three lawyers including Juan Felix Tampubolon and Indriyanto Senoaji, who also represents Soeharto.

"I came to answer the summons from the Attorney General's Office in order to give information about my job as treasurer of the Dana Sejahtera Mandiri foundation," Bambang said.

"The funds were only for social interests, for public welfare and the foster parents program," Bambang added.

In September, Coordinating Minister for Development Supervision and State Administrative Reform Hartarto said the Attorney General's Office had found what he called signs of abuse of funds in the five largest of Soeharto's charitable foundations including Mandiri.

He said there was evidence the funds had not been used according to the foundations' charters.

Barman Zahir, spokesman for the Attorney General's Office, said Bambang told investigators on Tuesday that none of Mandiri's funds were used for business and that they were channeled only to people's welfare programs in the form of grants or loans and for a foster parents program.

Attorney General Andi M. Ghalib said last week that evidence of criminal corruption would be needed to put Soeharto on charges.

Soeharto, who in November handed over Mandiri and six other charity foundations, worth some four trillion rupiah (US$ 530 million), to the government, is being investigated over allegations of corruption during his 32 years in power.

The veteran leader was summoned this month to be questioned over his charity foundations, his controversial national car program, his bank deposits, land and other assets.

The Attorney General's Office however has not declared Soeharto a suspect as he says further checks on other former officials and relatives were needed.

Legal experts, however, said there was enough evidence of ill- gotten wealth to bring him to court.

The Attorney General's Office has summoned numerous figures including former finance minister Mar'ie Muhammad, former industry and trade minister Tungky Ariwibowo and timber tycoon Muhammad "Bob" Hasan.

The government has slapped a travel ban on Bambang in connection with the investigation into his troubled bank.

The Attorney General's Office had earlier estimated Soeharto- chaired foundations worth over four trillion rupiah (US$ 532 million).

Though the office has yet to find evidence of Soeharto's personal use of the funds, Ghalib told the House of Representatives earlier this month that some practices, such as channeling the foundation's funds into businesses through the use of presidential decrees and various other government decrees, failed to reflect the people's sense of justice and had violated the principle of good governance.

"On the basis of facts and data, a large proportion of the foundations' funds were used by third parties close to Soeharto," he said then.

While these practices were beyond judicial bounds, as no laws regulated the issue, Ghalib described the practices as inappropriate. (byg)