Desy Nurhayati, Jakarta – The Attorney General's Office (AGO) said Friday it is ready to use "strong evidence" to prove Soeharto illegally channeled funds from his Supersemar Foundation to his family and confidants, instead of giving the money to recipients of the scholarship scheme.
The first court session for the civil case against former president Soeharto and the foundation has been scheduled for September 24.
AGO prosecutors and the former president's lawyers failed to reach any agreements after several mediation meetings held over the last three weeks.
AGO's director for civil and state administrative crimes Yoseph Suardi Sabda said their evidence included documents signed by Soeharto for the disbursement of funds to a number of institutions, as well as other documents concerning the foundation's activities.
Soeharto established the foundation based on a government regulation in 1976 to provide scholarships to needy students using donations collected from businessmen.
In the last mediation meeting on September 4, the former president's lawyers said they were optimistic about winning the case. They said their client had not violated any regulations during his tenure as the foundation's chairman.
Soeharto's lawyers disagreed with the prosecution's demand for the former president to admit he had broken the law and to reimburse to the state losses incurred.
"We'll see in the trial whether they can prove Soeharto donated all (the foundation's) funds (properly)," the AGO's Yoseph said.
"It is stipulated in the foundation's statutes all funds should be used for scholarships. Not under any circumstances or with any reason are funds allowed to be used for another purpose – and if they did so, they misused the funds. They should be able to give a clear explanation if they did not," he said.
The AGO alleges half the foundation's money was illegally channeled to Kosgoro cooperatives and the Nusamba group of companies managed by Bob Hasan, one of Soeharto's confidants. The case involves alleged state losses of US$420 million.
In July, the AGO filed a civil lawsuit against Soeharto and the Supersemar Foundation at the South Jakarta District Court and demanded the return of around Rp 15 trillion (over US$1.5 billion).
The initial hearing was held on August 9 at the South Jakarta District Court and ended with both sides being told to undergo mediation to settle the case – a compulsory function before a case can go to trial.
Yoseph said there would possibly be opportunities for opposing parties to hold negotiations outside the court in order to seek the most feasible solution, including the compensation amount.
The AGO would bring several witnesses in the following court sessions if necessary, he said.