Govt drops search for war fund

Govt drops search for war fund

JAKARTA (JP): The government announced yesterday that it has
ended its investigation into the existence of a special fund set
up in the 1960s by then president, Sukarno, to finance some of
the country's war campaigns at the time.

Minister/State Secretary Moerdiono told reporters that the
investigation was reopened last month because of renewed
controversy over the Revolution Fund.

The issue recently resurfaced now that one of the political
figures at the time who administered the money is about to be
released after nearly 30 years in jail.

Moerdiono said that in the absence of any concrete proof of
the whereabouts of the money, the government has ended the
investigation. "With this explanation, the government hopes that
the debate about this issue will not be prolonged," he said.

The minister was critical towards local media for fanning the
controversy which, he said, had its origins more on hearsay
rather than anything concrete.

He also appealed to the media to stop trying to link the issue
with the release of Soebandrio, the former deputy prime minister
who has been incarcerated since 1966 for his role in the 1965
abortive coup blamed on the Indonesian Communist Party (PKI).

He reminded the reporters that President Soeharto decided to
grant clemency to Soebandrio chiefly on humanitarian grounds, and
that it had nothing to do with whether or not he would cooperate
with the government in tracing the Revolution Fund.

"Is our memory that short that the man (Soebandrio) must be
bombarded with questions about the fund, when he has not yet
enjoyed his freedom. We think this is totally insensitive."

Soebandrio, 81, is scheduled to walk out of the Cipinang
correctional facility in Jakarta on Aug. 16.

The government last month was forced to reopen the Revolution
Fund file, and question some of the people who were believed to
have any knowledge about its existence, including Soebandrio.

The team of the Attorney General Office yesterday met to
review the results and discuss them with Moerdiono, before
deciding to end the wild-goose chase.

The Revolution Fund was used to finance some of Indonesia's
war efforts like the campaign to win Irian Jaya from Dutch hands
and the "Confrontation" against Malaysia. The money came from
special taxes on state enterprises, and some were deposited
abroad with Soebandrio as one of the men who had access to it.

Moerdiono explained that he personally headed the government
team in 1987 to investigate the existence of any remaining money
in the Revolution Fund after Soebandrio wrote to President
Soeharto giving details about some of the money. Moerdiono was
then junior minister/cabinet secretary.

In the letter, according to Moerdiono, Soebandrio stated that
the remaining fund included US$450 million at the Union Bank of
Switzerland, another $250,000 in a Zurich bank, $250,000 at
Daewoo Security's Co. in Japan, and gold bars, valued at 125
pound sterling, at Barclay's Bank in Britain.

Moerdiono said Soebandrio's claims were not supported by
concrete proof that they were difficult to trace.

The investigation did find some money, but nothing as large as
Soebandrio suggested, he said. By Oct. 1, 1987, the investigation
found that the size of the actual Revolution Fund was $553,111.14
and Rp 1,503,983. Then there was $250,000 from a Zurich bank and
$250,000 at Daiwa Security.

"All these moneys went to the government's account," Moerdiono
said, adding however that the other claims Soebandrio made were
dubious and could not be confirmed.

The minister said that while the government had dropped the
investigation, it would welcome anyone who may have some
information about the fund coming forward.

"To this day, we have not seen a shred of new evidence," he
said. "Is it easy to find evidence and trace the Revolution Fund?
The answer is no. Why not? I don't mean to insult the past, but
the administration at the time was very chaotic," Moerdiono said.

Meanwhile, Attorney General Singgih, who accompanied Moerdiono
at the press conference, warned the media to refrain from further
publishing stories speculating about the Revolution Fund because
it has created unrest among the people.

He said anyone who ran stories that are based on hearsay and
do not carry any truth are liable to criminal charges. "It's like
spreading lies, and those who do this should be punished."

Singgih said that anyone who has information about the
Revolution Fund is encouraged to come forward and give it to his
office. (emb)