Jakarta – The Indonesian government has found evidence of misappropriation of state funds by companies building a tollroad owned by the eldest daughter of former president Suharto, a senior official said Friday.

Finance and Development Supervision Board head Sudarjono said the board had discovered the alleged discrepancies in an audit of commercial papers issued by state-owned companies, including construction firm PT Hutama Karya. "One of the sets of commercial papers was issued by Hutama Karya ... but was not booked in the balance sheet of Hutama Karya," Sudarjono told journalists on the sidelines of a seminar here.

Instead of being booked in the balance sheet, the money was used by a private consortium "to finance several tollroads and we think there's a conspiracy in there," he said.

Asked whether the projects were related to the Suharto family, Sudarjono said: "All I know is the tollroad belongs to Tutut," refering to Suharto's daughter Siti "Tutut" Hardiyanti Rukmana." He did not provide the value of the commerical papers.

Different government departments have been slowly chipping away at the business empires of the six Suharto children, mostly through audits and through the re-examination of contracts awared without proper bid processes.

The most concerted investigation so far has been by the state oil and gas company Pertamina, which is in the process of examining 159 contracts for evidence of wrong-doing. Pertamina had also given foreign oil companies the green light to drop contracts they were forced into by pressure from the family during Suharto's 32 years in power.