Switzerland, Austria deny reports on Soeharto accounts

Switzerland, Austria deny reports on Soeharto accounts

GENEVA (Agencies): The official watchdog in charge of
supervising Swiss commercial banks said Wednesday reports that
former Indonesian president Suharto had stashed away US$9 billion
in Swiss bank accounts were highly doubtful, DPA news agency
reported.

"Our laws are among the tightest that exist," said Daniel
Zuberbuehler, a spokesman for the Berne-based Swiss banking
commission, dismissing the allegations as "highly unlikely
speculation".

The Austrian authorities also denied Wednesday any knowledge
about funds belonging to former Indonesian President Suharto held
in the country, following a press report about the transfer.

AFP reported from Vienna that Austrian interior ministry
spokeswoman Cornelia Zoppoth said there was "no indication of the
presence of Suharto funds in Austria," after Jakarta announced an
investigation into the report by U.S. magazine Times.

"The body which controls Austrian banks, with which we are in
contact, has not confirmed the rumors," said Zoppoth, adding that
Austrian organized crime investigators had studied the magazine
report.

Soeharto has dismissed the report as false.

The Indonesian government recently decided to send Justice
Minister Muladi and Attorney General Andi M. Ghalib to Europe to
try to trace the cash as part of efforts to speed up a probe into
Soeharto's allegedly ill-gotten wealth.

Times magazine had alleged that former president Soeharto and
his family had at least 15 billion dollars in foreign assets.

The report specified that $9 billion of that was transferred
from a Swiss bank account to an Austrian bank shortly after the
77-year-old Soeharto resigned on May 21, 1998.

The Swiss commission said Wednesday it saw no reason to launch
an investigation following the allegations.

"If we had tangible evidence that a specific amount of money
was deposited with a specific bank we would look into it,"
Zuberbuehler said.

He said under Swiss banking regulations, financial institutes
are required to exercise utmost care in connection with assets of
powerful foreign politicians.

"No Swiss bank would have had maintained major business
relations with him" since Suharto had had a reputation of being a
corrupt dictator, he said.

Zoppoth said she knew nothing about the trip by the Indonesian
justice minister and attorney general -- but warned that it would
need specific permission to investigate Austrian bank accounts.

"A legal authorization is needed .. to consult bank accounts.
Banking secrecy is very strict in Austria." No formal request for
such authorization has so far been received by the Austrian
justice ministry, according to the APA news agency.