Suharto Family Face Second Summons in Embezzlement Case

. (AFP Photo/Anwar Mustafa)

By : Edo Karensa | on 11:05 AM January 06, 2016
Category : News, Politics, Editor's Choice, Corruption

Jakarta. The South Jakarta District Court on Wednesday again summoned the family of former strongman Suharto to explain how they plan to repay Rp 4.4 trillion ($317 million) allegedly misappropriated during the former president's three-decade rule.

Family of the late strongman failed to appear at the court on Dec. 23, citing a scheduling conflict.

The court repealed a 1976 regulation, issued by the former president, ordering all state-owned banks to allocate 2.5 percent of profits to the foundation.

The court ruled the funds accumulated since the establishment of the Supersemar foundation — a total sum of $420 million and Rp 185 billion — were largely embezzled and never used for the fund's stated purpose: to improve education throughout the country.

An investigation found that a portion of the funds were funneled to private companies owned by Suharto's family members and friends. Many companies, such as Bank Duta and Sempati Air, are long defunct.

Wednesday's hearing will discuss how and when the Suharto estate will begin to reimburse the funds.

The court has earlier said it may order a seizure of Supersemar's assets if the estate continues to dodge orders to appear.

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