Damage case against Suharto thrown out; foundation guilty of graft

Thu, 03/27/2008 5:03 PM

A court threw out a US$1.1 billion damage claim against the late Indonesian dictator Suharto in a civil corruption suit Thursday and said he was not responsible for state funds stolen by a
charitable foundation he headed.

Judges ruled the foundation had stolen US$110 million from the state and ordered it to return the funds, but said Suharto and his children - named as defendants following his death in January - were not legally liable.

It was the first ruling by an Indonesian court in relation to accusations that Suharto amassed billions of dollars in stolen funds during his 32 years in power, and will likely anger critics
of the former leader.

"I am satisfied and very happy," said Otto Kaligis, a lawyer for the Suharto family.

Both Suharto and the foundation were named as defendants in the suit.

None of his children was in court to hear the ruling.

The lawsuit against Suharto alleged corruption in the setting up and running of the tax-free foundation he set up, ostensibly for charitable purposes. State-owned companies and other large businesses, foreign and local, were ordered to contribute to the
foundation.

Judge Wahyono said prosecutors were unable to prove the amount of immaterial damages they were demanding, but said the foundation had stolen state funds by siphoning money to companies linked to the dictator.

But Wahyono, who goes by a single name, ruled that Suharto could not be personally responsible because the decisions were made by the foundation board, not him.

He said it was "fair and fitting" that the foundation return US$110 million (euro70 million) to the state, around 25 percent of the figure alleged to be missing in the lawsuit. He said
ordering the foundation to return any more would hamper its ongoing charitable works.

Prosecutor Dahmer Munte said his team would study the ruling, especially the section on why Suharto and his family were not considered liable, but that "in principle our lawsuit has been proved, namely that the foundation has abused the funds."

Suharto's 32-year rule ended in 1998 amid student protests and nationwide riots. In 2000, prosecutors charged him with embezzling US$600 million, but he never saw the inside of a court
because his lawyers argued that a series of strokes had left him with brain damage. Critics say that case represented only a tiny fraction of the money he and his family stole.(**)

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