Soeharto 'using wealth as shield'

NEW YORK (Reuters): Former Indonesian president Soeharto has been maneuvering to reestablish a political power-base to shield his family's substantial financial fortune from scrutiny by future governments, the New York Times said yesterday.

Quoting Clinton administration officials and Western diplomats, the Times said there is no direct evidence that the Soeharto family has tried to bribe political or military leaders.

However, the officials told the daily that Soeharto and his six children were offering to underwrite the political campaigns of legislators who vow loyalty to the family, which has a fortune in the billions of dollars.

The officials told the paper that intelligence reports reaching the U.S. Central Intelligence Agency, the State Department and the Defense Department showed Soeharto was using his riches and his ties to the military to help his children retain their businesses and their top posts in the ruling political party.

Soeharto, who resigned in May, does not appear to be seeking reinstatement as president, the Times said.