Sat, 06 Jun 1998

Executives defend Soeharto fundations

JAKARTA (JP): Former top government officials currently running four of former president Soeharto's largest foundations said yesterday they would not relinquish the Rp 2.63 trillion (US$2.39 million) accumulated in the foundations' account to the government, but would instead continue their various social projects.

Sudharmono, Soeharto's close friend and former vice president, said the foundations were established by Soeharto in a private capacity and that it was irrelevant whether he was still in power or not.

He also claimed that the four foundations -- Amal Bakti Muslim Pancasila, Supersemar, Dharmais and Dakab -- received funds on a voluntary basis and that the former president had never tried to coerce donors.

Sudharmono, secretary of the Amal Bakti foundation, challenged people to file lawsuits if they were dissatisfied.

"If people have strong suspicions and evidence they can audit the foundations. We are open to it, as far as it is in line with the law," Sudharmono said during a media briefing at the foundations' headquarters at Granadi Building in Kuningan, South Jakarta.

Also present were former minister/state secretary Moerdiono, who is Dakab's deputy chairman, and former minister of cooperatives Bustanil Arifin, a treasurer of the Amal Bakti foundation.

The government has not formally asked for the foundations to turn over their money, which was often collected with government support, but the public has been focussing attention on Soeharto's amassed wealth.

"Symbolically the amount may be big, but in realty it's meaningless to the government," Sudharmono said as he skirted questions about transferring the funds to the cash-strapped government.

Amal Bakti Muslim Pancasila was established in February 1982 with the purpose of building mosques and financing religious activities. Its total assets are worth Rp 211.98 billion.

Controversy surrounded the collection methods of this foundation when in November 1982 the government siphoned Rp 50 from the monthly salaries of low-level Moslem civil servants and Armed Forces (ABRI) members. Senior ranking officials had their monthly pay cut Rp 1,000 for the foundation.

"We've built 870 mosques in 26 provinces," Sudharmono defended.

The Dharmais foundation was set up in 1975 with the aim of helping homeless and disabled people and to provide health services. Its assets are about Rp 733.88 billion.

Since 1978, the Ministry of Finance ordered all state-owned banks to contribute 5 percent of their net profits to Dharmais.

"If it's now considered they no longer need to give donations, it's OK," Sudharmono remarked.

The Supersemar foundation was formed in 1974 to provide scholarships for students from elementary school to post-graduate schools. Its assets are estimated at Rp 808 billion.

"At least 5,000 students have finished their studies at universities with our financial assistance," Sudharmono noted.

The Dakab foundation was set up in July 1985 mainly to finance the Golkar political faction, which Soeharto heads, for its social activities. Its assets are worth Rp 836.20 billion.

Informed sources told The Jakarta Post yesterday that Soeharto planned to hold a media conference Tuesday if he felt that people were widely dissatisfied with Sudharmono's explanation.

"Pak Harto will make his own explanation if he feels that people still continue questioning his wealth," the source, speaking on the condition of anonymity said.

Dharmais, Supersemar and Dakab jointly control 79.29 percent of publicly listed Bank Duta. The Nusamba Group, also controlled by the three foundations, also has a 10 percent stake in the country's biggest carmaker, PT Astra International. (prb)