Indonesia to hire foreign investigator

Indonesia to hire foreign investigator

JAKARTA (JP): President B.J. Habibie has agreed to hire a
foreign private investigator to trace any money obtained through
graft and deposited abroad by Indonesians, including assets
allegedly owned by former president Soeharto and his children,
Minister of Justice disclosed on Monday.

"There is a need for an international private investigator to
track money obtained through laundering and corruption... and
the President has approved it," Muladi said after meeting with
the President and Attorney General Lt. Gen. Andi M. Ghalib at
Habibie's residence in Patra Kuningan, South Jakarta.

The minister emphasized the private money tracker would not
only target the former first family and their cronies, but also
any citizens suspected of transferring money thought to be
obtained through graft.

Muladi said the President's decision was based on a
recommendation by himself and Ghalib following their recent trip
to Austria and Switzerland, which he described as a successful
trip.

According to Muladi, a professor of law, the government would
select one of the world's best investigators, but quickly
excluded professional money tracker Kroll Associates from the
list.

He acknowledged that the government previously hired the
company to investigate businessman Eddy Tansil, who was found
guilty of taking more than US$430 million from state Bank
Pembangunan Indonesia (Bapindo) for the construction of several
chemical factories under his Golden Key Group in a credit scam
run between 1989 and 1990.

Eddy escaped from Cipinang Penitentiary in East Jakarta in May
1996, with many believing he fled to China. The government never
released the results of the Kroll investigation.

"This time we will not use Kroll, but will select a similar
company," Muladi said without elaborating.

The two Cabinet ministers reported the result of their visit
to the two countries to follow up a recent report of Time
magazine in which it claimed the Soehartos transferred US$9
billion from Switzerland to an Austrian bank shortly after
Soeharto resigned as president in May last year.

Muladi claimed the two countries agreed to closely cooperate
with Indonesia in hunting down Soeharto's alleged wealth. He was
confident that the government would be able to resolve the
mystery of the money in a few months.

He said the government would also take steps to enter
agreements on mutual assistance on criminal matters with Austria
and Switzerland in paving the way for the probe.

He acknowledged the two governments required Indonesia to
submit requests for such agreements to them.

"There is an urgent need for efforts to enter agreements on
mutual assistance on criminal matters between Indonesia and
Switzerland and Austria," Muladi said.

Muladi added that Indonesia was also obliged to have a law on
money laundering. He claimed his ministry had finished drafting a
bill and would soon submit it to the House of Representatives
(DPR).

Warning

Muladi also warned Soeharto and his children to be more
cooperative with the government and stop hiding their wealth. He
said it would be dangerous for them if they continued hiding the
facts because people would eventually learn the truth.

The minister pointed out the government had collected
preliminary evidence on their wealth, and that the former
president was not free from any wrongdoing during his tenure.

He said the management of Soeharto's foundations and the
decrees he issued for his children's businesses could become
evidence of abuses of power.

"The situation will be worse for them (if they are not
honest)," warned Muladi. (prb)