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.