Cash flowing into Austria may be Soeharto's: Report
Cash flowing into Austria may be Soeharto's: Report
VIENNA (Reuters): A massive flow of foreign money early this
year supports suggestions that former Indonesian President
Soeharto moved billions of dollars to Austrian banks shortly
before his downfall, according to an Austrian business newspaper.
Central bank figures showed the value of investments held by
foreign depositors at Austrian banks rose by 93 billion
schillings (US$7 billion) during the first quarter of 1998, the
daily Wirtschaftsblatt said in its Friday edition.
"That was by far the biggest increase ever recorded by the
statisticians," the paper said.
Wirtschaftsblatt said the figures gave weight to the
conclusion of David Hale, chief economist of Switzerland's Zurich
Insurance, that Soeharto had moved $8 billion from Indonesia to
Austria.
"Apparently their ilk doesn't trust Swiss banks anymore, with
the breaching of that country's bank secrecy laws," Hale told
U.S. business magazine Barron's last week.
Austrian banks have refused to comment, citing customer
confidentiality, newspapers reported on Saturday.
Suharto, who resigned in May amid an economic crisis and
rioting which left 1,200 people dead, denied last month that he
had any foreign bank accounts and said charitable foundations he
set up during his presidency were open to auditors.
"If anyone can find an account under my name abroad, then
report it," he was quoted as saying on July 10 by the Antara news
agency.
Indonesia has appointed auditors to examine the five
charitable foundations Soeharto established during his 32 years
in power. Official enquiries have been made to the United States,
Switzerland and Australia, but not yet to Austria.
Austrian banks are required by law to establish the identity
of customers involved in transactions worth more than $16,000.
An Austrian Finance Ministry official said on Saturday there
was no evidence to suggest Soeharto or his family had deposited
billions of dollar's in the country.
"There are no indications of that," the official was quoted as
saying by the daily die Presse newspaper on Saturday.
The daily Kurier commented that such deposits would normally
be made by front men so the ministry was unlikely to know about
them anyway, said.