Decree lets govt take over Soeharto foundation assets

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)