Decree lets govt take over Soeharto foundation assets
JAKARTA (JP): A new presidential decree will be issued allowing the government to take over Rp 4 trillion (US$540 million) in assets from former president Soeharto's seven foundations.
The decree would allow the government, through the Coordinating Ministry for People's Welfare and Poverty Eradication, more than the mere "operational coordination" it currently has over the foundations' funds.
"There will be a new presidential decree to utilize the funds from these foundations more effectively," Coordinating Minister for People's Welfare and Poverty Eradication Basri Hasanuddin said on Monday.
Assistant to coordinating minister for people's welfare and poverty eradication Dharmadi told The Jakarta Post that the new decree would cede more power to control the total assets of the seven foundations -- Supersemar, Dharmais, Dakab, Amal Bakti Muslim Pancasila, Dana Sejahtera Mandiri, Gotong Royong and Trikora.
"It will go further than just the operational control of the foundations," he added.
Dharmadi refused to elaborate any further, saying information about the decree should come from the presidential palace.
The question of Soeharto's foundations became an issue following the former president's resignation.
After strong public criticism, Soeharto handed over the foundations in November 1998 with the understanding that its money could be used to help the government's poverty alleviation programs.
Then information minister Muhammad Yunus claimed Soeharto, in a letter dated Nov. 22, 1998, had handed over the foundations to his successor B.J. Habibie.
Habibie assigned then coordinating minister for people's welfare and poverty eradication Haryono Suyono to represent the government as "operational coordinator" of the foundations.
The controversy over the funds surrounds the method in which the money was collected as it was often a result of "official siphoning" of public funds through a presidential decree.
These decrees were eventually revoked when Soeharto stepped down.
What has escaped the public's attention thus far is that while the government now functions as "operational coordinator" it has no direct authority to disburse the funds without the approval of certain former government officials who were top ranking state officials during the Soeharto era.
In effect, the government was dependent upon their approval to disburse any amount of money.
Haryono Suyono, who is vice chairman of the Dana Sejahtera Mandiri Foundation, also serves as the interlocutor between the seven foundations and the government, despite no longer holding any official government post.
Speaking to the Post on Monday, Haryono maintained that Soeharto had never legally gave up control of the foundations' assets to the government.
"The government only has operational control, as stipulated by a presidential decree which appointed the coordinating minister as coordinator of the operational team," he contended.
Haryono underlined that the government can intervene in the programs of the foundation but extracts funds without approval.
"The assets and the (composition of) board members of the foundations are our internal issues," he said.
When asked if the general public was duped into thinking that the control of the foundations was handed over to the government, Haryono merely replied: "I cannot comment on that. It happened in the past which I've already forgotten about and no longer look back on."
Sources at the foundations told the Post that Soeharto had delegated the authority of the assets of the foundations personally to Haryono not as the then coordinating minister but to him personally.
Dana Sejahtera Mandiri Foundation, which was set up in 1996, owns the largest amount of money among the seven foundations with about Rp 1.1 trillion.
The source also confirmed that up to now Soeharto still chairs the foundations while several former top ranking officials serve as vice chairmen of these foundations.
Haryono said former vice president Sudharmono serves as vice chairman of the Dakab Foundation, which was set up in July 1985, mainly to finance Golkar's political activities.
Haryono claimed the Dakab Foundation now concentrates its activities on poverty eradication programs.
When asked about allegations of corruption and misuse of presidential power to amass funds for the foundations, Haryono said if Soeharto is found guilty, he should be sentenced.
"But please, don't disrupt the good deeds these foundations have done," he said.
When further pressed if he knew of any misuse, Haryono said: "I cannot tell you whether that's true or not. Maybe in the politically linked foundations it could happen, I don't know." (dja)