Indonesia Begins Probe of Suharto Foundations

But despite the mounting public pressure, which peaked just as the country marked the second anniversary of his May 21, 1998 resignation amid public anger and riots, the 78-year-old Suharto has yet to be charged in court by the government of President Abdurrahman Wahid.

"Up until now, there is no single proof that Suharto directly committed corruption. All was done by his cronies and family members," said an official of the Attorney General's office, which is in charge of putting together evidence that can be used to charge Suharto.

"What is there are indications and hints, not evidence," he added.

The current investigation focuses on his seven foundations, the case of the "national car" project Timor which had been awarded to a Suharto son, and allegations that Suharto used presidential decrees to enrich himself and his family. A past inquiry under the Habibie government had been dropped.

By presidential decree, Suharto raised huge amounts of funds through these foundations. The decree stipulates that all state corporations set aside five percent of their profits and give them to the foundations, which were supposedly formed to help the poor.

The same critics add that Suharto channelled the funds to large corporations belonging to his cronies and family members.

For instance, the Dharmais foundation lent 750 billion rupiah ($312.5 million) to the Nusamba Group, a conglomerate belonging to the timber baron and Suharto friend Mohammad "Bob" Hasan.

The money was also used to buy shares of various companies, such as PT Indocement, Kiani Kertas and PT Citra Marga Nusaphala Persada, whose core businesses ranged from pulp and paper production to road construction.

These transactions are under question because foundations are meant to be non-profit institutions.

Based on these allegations, the Attorney General Marzuki Darusman declared Suharto a suspect on May 3. He also says the investigation will be completed by Aug.10 and any charges brought to court by then.

On May 29, Suharto was put under house arrest by the government in a move that highlights both the public pressure for accountability as well as the difficulty that the government faces in trying to achieve this.

Legal experts say the search for whatever ill-gotten wealth Suharto may have -- estimated at billions or even tens of billions of dollars -- will be difficult. When he was in better health, Suharto denied the charges and told national television he had no overseas bank accounts.

"I don't see any proof that links Suharto directly to corruption charges. If he issued a wrong decree, then the measure would be to submit to judicial review to the Supreme Court," said Juan Felix Tampubulon, a member of Suharto's lawyer team.

Meanwhile, the government has to deal with another hindrance: Suharto's health.

So far, the investigation team from the Attorney General's office has gone to Suharto's residence three times and returned empty-handed because the former president, as Tampubulon said, "is like a child who is learning to speak. His utterances are confusing, especially when it comes to serious things."

Government lawyers last went to Suharto's home on May 29 to question him about the charitable foundations, but Tampubulon said the former leader could not remember a lot of things. Suharto has had three strokes and his lawyers say he has difficulty talking.

Some say the Suharto probe is affected by concerns over its possible impact on the economic stability of a country still reeling from the effects of the 1997 economic crisis.

Earlier last month, the Attorney General put on hold a legal investigation into the Texmaco scandal, in which Suharto had allegedly granted a billion-dollar pre-shipment facility to Marivutu Sinivasan, one of his cronies.

Thorough investigation and enforcement of the law on this corporation will put the country's economic stability at stake since the company has huge assets, a large number of employees and the interest of foreign investors, economic analysts say.

"It is this consideration that has prompted the Attorney General to put the case on hold," said economist Faisal Basri.

The slow progress of moves to gather evidence against Suharto and take legal action has frustrated students and activists who want an immediate trial of the former president.

As a result, over several weeks in May, his residence in Jalan Cendana has been the target of daily demonstrations and rallies.

Earlier, the regular target was the office of the Attorney General. But they switched their attention to the Suharto residence after the office gave them the same reply -- that a "preliminary investigation is underway to bring him to court."

"We don't think the Attorney General is serious in taking him (Suharto) to court. The Attorney General Marzuki Darusman is a top Golkar official, and Suharto is former chief of the Golkar Supreme Advisory Council," said a student demonstrator. "It is not likely that a man would be willing to put the one he respected into trouble."

"So we decided to drag him (Suharto) into a people's trial," he asserted.

At one point, an anti-Suharto rally turned raucous when protesters, following their clash with the police, vandalized and set fire to at least five military vehicles.

While the public clamor for accountability continues, however, Wahid's own pronouncements have added to uncertainty.

For instance, while his government pledges to speed up the probe into allegations of Suharto's corruption, Wahid has also said he would pardon Suharto if he is convicted as long as he returns stolen wealth to the nation.