Govt to trace 'Time' reports in Europe

Govt to trace 'Time' reports in Europe

JAKARTA (JP): Minister of Justice Muladi announced on Tuesday
he would go to Switzerland and Austria with Attorney General A.M.
Ghalib to investigate Time magazine's report on the transfer of
US$9 billion in funds allegedly belonging to the Soeharto family
from a bank in Switzerland to an Austrian bank.

Muladi, who is also minister/state secretary, said they would
depart on Sunday and travel to Geneva and Vienna to meet their
counterparts in the two countries. Muladi expressed confidence
the two countries would cooperate with Indonesia in uncovering
Soeharto's alleged wealth.

"We will ask the Austrian government (for their cooperation),
and then meet with the minister of justice and attorney generals
of Austria and Switzerland to find the truth about the money
transfer," Muladi said after meeting with President B.J. Habibie
at Merdeka Palace. He was accompanied by Ghalib at the meeting.

The visit will prove the President is very serious in
investigating Soeharto's wealth and that the government will be
able to settle the case soon after the general election, Muladi
said.

The money, if recovered, would be enough to finance the
government's budget so it could stop borrowing from foreign
donors, Muladi noted.

"We would no longer need to borrow from the IMF (International
Monetary Fund)," Muladi said.

Ghalib played down fears the two countries would refuse to
help in the investigation unless criminal charges were filed
against Soeharto, saying the power of attorney conferred by
Soeharto was a strong legal base for the investigation.

The President will also send letters to the heads of
government of the two countries asking their help in the inquiry.

"Before our departure, we will ask Pak Harto to grant me
power of attorney, as he previously promised," Ghalib said.

In September, Soeharto submitted two unsigned letters
authorizing the attorney general to transfer any funds held
abroad in his name to the Indonesian government. The letters also
authorized banks to reveal the details of any accounts in
Soeharto's name.

"With the power of attorney, I am sure the banks will give us
(information)," Ghalib said.

"I will ask the names of the banks, the amount of the deposit
and when and who transferred the money," Ghalib said about what
questions he will ask the two governments.

In its 14-page report, the New York-based Time magazine
reported that $9 billion belonging to the Soeharto family was
transferred from Switzerland to a nominee bank account in Austria
not long after Soeharto resigned as president in May last year.

"The transfer caught the attention of the United States
Treasury, which tracks such movements, and set in motion
diplomatic inquiries in Vienna," the report said.

Stephen Vickers, the director of Kroll Associates, a firm
which tracks assets, wrote in the magazine that a search for
assets belonging to the Soehartos could last from one year to two
years.

Ghalib said his office was more than capable of investigating
Soeharto's alleged wealth.

He doubted Kroll would be able to trace Soeharto's alleged
wealth despite its experience in tracking the assets of former
Philippine president Ferdinand Marcos, Haiti's Jean-Claude
Duvalier and other former rulers.

"They (Kroll) cannot move if they do not have any data, just
like us," Ghalib said.

The two Cabinet members were confident they would be able to
verify the accuracy of the Time report during their four-day
visit.

"If we fail, it is a matter of fortune. It is God's decision,"
Muladi said.

Skepticism

Two of Soeharto's eight-strong legal team, however, doubted
the effectiveness of the mission, saying Switzerland and Austria
would only help the government if it knew the name of the bank
and Soeharto's account number.

Lawyer Juan Felix Tampubolon said he appreciated the
government's efforts, but emphasized that legally, power of
attorney could only be given if the government could name the
bank where Soeharto allegedly deposited the money and if they
knew his bank account number.

"The name of the bank and the account number must be disclosed
first. When Pak Harto came to the Attorney General's Office in
September, he said he would sign the letters if the government
knew the name of the bank and the account number," Tampubolon
told The Jakarta Post.

Tampubolon again blasted Time for its refusal to provide
evidence to support its report, and said he had sent a second
warning letter to the magazine's lawyer, Todung Mulya Lubis.

Assegaf, another Soeharto lawyer, said Soeharto was ready to
sign the letter of power of attorney as a reflection of his
standing as a good citizen, but warned the letter alone would not
be adequate for the government.

"A letter of power of attorney without evidence is just
useless," Assegaf said.

Separately, Todung said his client would cooperate with the
government, but would not present hard evidence, including news
sources or other vital documents.

"Time cannot give hard evidence, it will be very difficult
because it is tied by confidentiality," Todung said. (prb)