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Suharto charged with using foundation funds to cover losses

AFX-Asia - August 9, 2000

Jakarta – Former president Suharto has been charged before the South Jakarta district court of allocating 419.593 million US dollars to cover losses of Bank Duta in the early 1990s, with the funds taken from one of his social foundation funds, court documents said.

"A total of 419.593 million US dollars was trasferred from Yayasan Supersemar to PT Bank Duta to cover losses of the bank," according to a 45-page document obtained by AFX-Asia.

The document setting out the charges said that of the 419.593 million US dollars, about 125 million US dollars was transferred from the foundation's account in Indover Bank to Bank Duta's account in the same bank on the strength of a letter from then president Suharto dated September 20, 1990.

In addition, the foundation's treasurer, Ali Affandi, transferred 19.593 million US dollars to Bank Duta's account on September 25, 1990, and 275.043 million US dollars on September26, 1990.

The documents also said the foundation transferred 13.173 billion rupiah to bankrupt airline company PT Sempati Air. The airline is jointly owned by Suharto's sons Hutomo Mandala Putra and Sigit Harjojudanto as well as businessman Mohammad "Bob" Hasan.

Suharto was also charged with having issued an order to the foundation's treasurer in September 1995 to transfer 150 billion rupiah to Hasan's companies PT Kiani Sakti and PT Kiani Lestari.

The former president was also charged of having ordered the foundation's treasurer to transfer a total of 12.744 billion rupiah to two other companies owned by Hasan: PT Kalhold Utama (3.694 billion rupiah in December 1982 and 2.750 billion rupiah in May 1990); and PT Tajung Redep Hutan Tanaman Industri (6.3 billion in May 1993). The documents also said 10 billion rupiah was also transferred to PT Wisma Kosgoro on December 28, 1993.

"With the above actions, the defendant [Suharto] has enriched PT Bank Duta, PT Sempati Air, PT Tanjung Redep Hutan Tanaman Indusri, PT Essam Timber, PT Kalhold Utama, PT Kiani Lestari as well as PT Wisma Kosgoro, which is against the aim of the foundation," the document said.

"As a result of these transactions, the state lost 191.830 billion rupiah and 419.636 million US dollars in potential revenues," it said. Suharto received a copy of the charges at 4pm today, prosecutor Muchtar Arifin said.