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Executives defend Soeharto fundations

| Source: JP

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)

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