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Monday, June 1, 1998

Suharto's corporate regime faces audits

THE OBSERVER NEWS SERVICE  
The troops, tanks and barbed-wire barricades that guarded Jakarta's Grand Hyatt Hotel against rampaging mobs have gone, but the threat to the Suharto family's interest in one of the capital's ritziest hotels may be just beginning.

In a modest bungalow a mile away, a dozen lawyers and economists are working on a strategy to unravel the vast web of businesses and privileges amassed by former President Suharto's family and cronies during three decades of power. ``We will gather information from the public on everything,'' Albert Hasibuan, a newspaper proprietor and member of the national human rights commission who leads the group, promises.

His self-styled Commission of Concerned Citizens on State Assets will try to pull together a case for legal action. ``We will deliver this information to the attorney-general's office,'' he says. Only a week after the president resigned and before the group has even advertised its existence, faxes and letters are rolling in with details of alleged financial abuses by theformer first family. One says the Grand Hyatt, part-owned by one of Suharto's sons, has not paid taxes, courtesy of a 10-year exemption.

After the mob fury that targeted businesses identified with the Suhartos and their cronies, politicians and reformists are taking up the demand for retribution in a city where even street-corner child vendors are hawking photocopies of a list of the Suharto family's businesses.

``Everybody thinks this wealth should return where it belongs, to the people of Indonesia,'' argues Yusuf, a student who took part in the occupation of parliament. ``We understand the Suharto wealth is very large and if we gather it back we may be able to pay off all our debts,'' chimes in Sakyanata, an economics student. ``I want to see Suharto on trial.''

Hasibuan's team is only one of a series of investigations into businesses that control a huge slice of national wealth. ``In 1965 there was a purging of communists,'' says one finance company executive, alluding to the the bloody upheavalsthat brought Suharto to power. ``In 1998 there will be a purge of first family interests.'' A minister for investment has promised to examine the tax breaks handed out to companies linked to the Suharto family.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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