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)