Thu, 26 Nov 1998

Soeharto hands over foundations' money

JAKARTA (JP): Former president Soeharto has handed over to the government the funds from seven charity foundations he chaired, a total of about Rp 4 trillion (US$530 million), according to Minister of Information Lt. Gen. Muhammad Yunus.

In a letter dated Nov. 22, Soeharto advised his successor B.J. Habibie to use the funds to empower the poor and alleviate poverty, Yunus noted on Wednesday.

"The President has assigned Coordinating Minister for People's Welfare and Poverty Alleviation Haryono Suyono to represent the government and act as 'operational coordinator' of the foundations," Yunus said after attending a six-hour monthly cabinet meeting on political and security affairs at the Bina Graha presidential office.

Coordinating Minister for Development Supervision and State Administrative Reforms Hartarto said the handover would not affect the ongoing investigation into the foundations.

"The investigation will go ahead," Hartarto said.

Speaking to journalists before the cabinet meeting, Haryono said the assets of the foundations include stakes in various banks and companies.

Haryono identified the foundations as Supersemar, Dharmais, Dakab, Amal Bakti Muslim Pancasila, Dana Sejahtera Mandiri, Gotong Royong and Trikora.

The Supersemar foundation was formed in 1974 to provide scholarships for achieving students from elementary to post- graduate schools. Its assets are estimated at Rp 808 billion.

The Dharmais foundation was set up in 1975 with the aim of helping the homeless and disabled people and providing 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.

The Dakab foundation was set up in July 1985 mainly to finance the Golkar political grouping that Soeharto headed. Its assets are worth Rp 836.20 billion. Soeharto had previously refused to hand over the funds to Golkar.

The Amal Bakti Muslim Pancasila foundation was established in February 1982 with the purpose of building mosques and financing religious activities. Its total assets as of June this year are Rp 211.98 billion.

This foundation collected Rp 50 from the monthly salaries of low-level Moslem civil servants and Armed Forces (ABRI) members. Senior officials had their monthly pay docked by Rp 1,000.

The 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.

The assets of Dana Sejahtera Mandiri are worth about Rp 1.1. trillion. It collected monthly fees from private and state-owned companies.

Two months after replacing Soeharto in May, President Habibie revoked the rights of the foundations to collect funds from the public. The government had said that it had found several examples of misuse of funds in the first five foundations.

Separately, Soeharto's youngest son Hutomo Mandala Putra, also known as Tommy, challenged the public and the students on Wednesday to prove their allegations of his father's wrongdoings rather than just condemning him without strong evidence.

"Prove his mistakes and do not just talk, demonstrate or demand," he said after undergoing a seven-hour questioning at the Attorney General's Office.

This was the third consecutive day he was questioned for his alleged role in a multi-million dollar land scam.

"Pak Harto is concerned. Why are people and students preoccupied with denouncing him even as more people go hungrier and become poorer," Tommy said.

Tommy said his father would be ready to face any trial if the government had strong evidence against him.

"Bapak is ready for a trial. Why not? He has not committed any crime," Tommy said.

Even as Tommy spoke at the Attorney General's Office, about 2,000 students from the Student Action Front for Reform and Democracy (Famred) and Forum Bersama held yet another rally and tried to reach Soeharto's residence on Jl. Cendana, Central Jakarta.

"Hang Soeharto for his sins" read one of their banners.

The students started from Jl. Kebon Kacang near the Sogo department store, and congregated at the Hotel Indonesia roundabout.

"We're trying to reach Cendana, Soeharto's residence. We want to convey to him our message. He is responsible for everything that happened in the past 32 years," Famred's Wahab said.

Security forces tried to block their advance in front of the Mandarin Oriental Hotel but later opened the cordon and let the protesters stream into Jl. Imam Bonjol. They were again halted near the Surapati Park, some 500 meters from Soeharto's residence. (prb/edt)