Jakarta – Lawyers for former president Soeharto criticized Monday state prosecution charges alleging the misuse of Supersemar Foundation funds, saying foundation money provided to some companies was in compliance with the foundation's internal regulations.
But the prosecution said the foundation had no right to give state funds to a third party and that both Soeharto and Supersemar had acted illegally.
Soeharto's lawyer Muhammad Assegaf said at the civil case hearing in Jakarta the foundation's internal rulings stipulated it could establish cooperation with other parties as long as it complied with the existing law.
Assegaf said prosecutors had no right to interfere with the foundation's internal business, saying if conflicts occurred during the lending cooperation period, it should be discussed internally between the foundation and the company involved.
Prosecutors earlier accused Soeharto and several members of the Supersemar Foundation of giving US$420 million and Rp 185.9 billion (US$20.36 million) to several companies belonging to "Soeharto cronies" during his presidential tenure.
The prosecutors demanded Soeharto along with the foundation reimburse funds to the state through the civil lawsuit under trial.
"The fact is, instead of giving all of the funds donated as required to needy students throughout the country, they preferred to give it to companies without a clear reason," prosecutor Dachamer Munthe told reporters outside the court room.
"They won't admit the funds belonged to the state, but it has been proven the foundation received donations from state-owned banks.
"Each bank was required to give part if its net profits to the foundation," he said. Government Regulation No. 15/1976 stipulates 2.5 percent net profit of each bank must be donated to the Supersemar Foundation.
He said prosecutors were optimistic about proving Soeharto's misappropriation through a civil case trial because they had evidence of the corruption.
Soeharto's lawyers said the prosecutors did not have a clear legal basis because Soeharto was never proven guilty by a criminal court and therefore should be tried again.
The criminal trial against the former president at the South Jakarta District Court was stopped by the then-Attorney General Abdul Rahman Saleh in August last year on the basis of Soeharto's poor health.
Abdul said Soeharto suffered a stroke and this condition would not allow him to properly provide testimony.
Dachamer said his prosecution team did not have to prove Soeharto and the foundation were guilty of corruption in order to file a civil lawsuit. "We will let the panel of judges decide that matter," he said.
Presiding judge Wahyono adjourned the trial until Oct. 29.