Suharto Charged in $US1.54 Billion Suit

    After escaping a similar lawsuit in 1998 due to claims of incompetency to stand trial, former Indonesian dictator Suharto had civil charges filed against him yesterday in the South Jakarta district court for the misappropriation of more than $US1.5 Billion.  Also implicated in the case is the Yayasan Supersemar (or the Supersemar foundation).  "The foundation was supposed to give scholarships and education assistance for underprivileged students," said chief prosecutory Dachmer Munthe, "[b]ut in fact it went against the law by giving state money away outside the stated purpose."  Munthe went on to specify that, "This is not a criminal case against corruption, but a civil lawsuit . . . [w]e just want the money back.  It could be used for the development of this country."

    The prosecution's case  is that  during Suharto's 32 year reign as the leader of Indonesia, he associated himself with the foundation and then funneling the money towards an unknown purpose.  Because of Suharto's association with the charity, it was seen as a civic duty to contribute to it, which allowed the fund to raise an estimated $US441 Million.  The $US1.5 Billion represents this actual loss coupled with an additional $US1.1 Billion in special damages.

    Despite Munthe's stated confidence in his case, a number of legal hurdles must be surmounted before a finding of guilt.  Perhaps most troubling is that, despite the fact that Suharto left power in 2000 in the wake unrest from the collapse of the Asian economy, he still has considerable influence over the Indonesian political and judicial machinery.  Also, Suharto's lead attorney Muhammad Assegaf, insists that this lawsuit is misdirected because, while the Supersemar foundation might have engaged in malfeasance, Suharto is no longer in a position of leadership over the organization and retains no formal ties to it.  Finally, there are still many questions about whether documents that are essential to the prosecution's case are even still available. 

    When charges were brought in 2000 over the misappropriation of $US600 Million, Munthe said that he believed that those charges were just the tip of the iceberg.  While Suharto, then 79, was able to claim that two strokes had made him incapable of standing trial, the present case might vindicate Munthe's wish to see justice brought to Indonesia.

Please see also:
"Suharto faces $1.75bn civil lawsuit" The Australian (9 July 2007)
"Suharto hit with $1.54 billion lawsuit" Houston Chronicle (9 July 2007)
"Indonesia prosecutor file civil suit against Suharto" Reuters (9 July 2007)
"Prosecutors File Lawsuit Against Suharto" The Guardian (9 July 2007)