Jakarta – Troops fired warning shots as thousands of students shouting "Hang Suharto" tried to storm parliament on the first anniversary of the downfall of the former strongman here Friday.

The clashes erupted after the 77-year-old Suharto insisted on television he would never flee abroad and blasted reports that his family had amassed a 15 billion dollars fortune as "cruel" lies.

"I am still in the country, and why should I run overseas, because I feel I have done no wrong," a smiling Suharto said from his plush Jakarta residence.

"I am still in Indonesia and will remain in Indonesia, I will not run. I was born in Indonesia and will die in Indonesia. I will not run and be buried abroad," said Suharto who resigned amid mounting protests on May 21 1998. He added that his six children will also remain in the country.

Tensions spilled over as thousands of students attempted to protest in front of parliament to mark the day. They demanded that Suharto be brought to justice.

Warning shots and teargas were fired as students pelted and beat with sticks the soldiers blocking their advance. At one stage the cordon had to retreat some 50 metres (yards).

Another 1,000 students stood in front of the state University of Indonesia in Jakarta – where reform protests that helped topple Suharto began last year – to demand a more thorough probe of Suharto's personal wealth.

President B.J. Habibie, Suharto's protege, marked the anniversary of his one year in power by cutting a ceremonial rice cone at the state guest house.

He said he had been "entrusted by the One God and the people" to lead the Indonesian nation in its struggle and prevent it from disintegrating.

Suharto's television appearance was the second he has made since his ouster, and the first at which a foreign telvision station, CNN, was present.

He devoted much of it to answering charges carried by Time magazine this week that he and his family had a fortune of 15 billion dollars accumulated during his 32 years in power. It said nine billion dollars of was under his name in an Austrian bank.

"It's a lie. If they don't have proof and facts to back it up, it is slander and defamation. Honestly, that's more cruel than murder," he said.

Suharto said his lawyers had sent a letter demanding that Time produce proof and added that if they failed, "me and my team of legal advisors will settle it, whether in a case in civil or criminal court."

"I don't have any money abroad, I don't have savings in any bank. If they find it, it must have been planted by someone using my name, and I will press charges against this person.

"If the money is there Indonesia stands to gain, because [it is] nine billion [dollars]. We'll withdraw it and give it to the people."

He said he was "feeling very happy" and that he had been able to play golf, going fishing in the Bay of Jakarta and be with his grandchildren.

"I feel just as usual, because I am convinced that there is no truth in what is being said of me," he added.

"There are so many people who insult me. Go ahead, insult. Whoever insults me, they will take on my sins. I believe that God will not let people slander and say things that are not true," he said.

Opponents have also accused Suharto and his loyalists of encouraging troubles that have broken out across Indonesia in the past year.

Time said it had documented more than 73 billion dollars "in revenues and assets" that passed through family hands but had dissipated through "mismanagement and Indonesia's financial crisis."

Echoing the demands of reformist students who spearheaded the massive street protests that helped push Suharto out of power, the latest demonstrations heard shouts of "arrest and bring Suharto to trial," and "Hang Suharto."

The anniversary came as the country embarked on the official campaign for the June 7 general election which will lead to the formation of a new parliament, and in November the choice of a new president.