Indonesia's Suharto may face civil suit soon

Jakarta, Feb 2 (Reuters) Indonesian prosecutors will soon launch a civil suit against former President Suharto for allegedly using charitable funds to enrich friends and relatives, the country's attorney general said today.

The attorney-general's office last year dropped criminal graft charges against the 85-year-old, who ruled Indonesia for 32 years with an iron fist, because of his poor health.

Attorney General Abdul Rahman Saleh told reporters the suit involves funds worth three trillion rupiah (330 million dollars) that went through the Supersemar Foundation which Suharto founded.

''We still have a few technical issues. We will meet tomorrow night with experts to finishing touches. Basically, an institution was used to give advantages to cronies,'' said the former Supreme Court judge.

The Supersemar foundation collects donations from businessmen and other sources to provide scholarships for underprivileged students. Helping a foundation with links to Suharto during his reign was seen as a civic duty.

The graft charges are part of investigations into seven charity groups once headed by Suharto, although his critics say the amounts involved are a small part of billions of dollars misspent or improperly funnelled to his family and associates.

Suharto, who stepped down in 1998 when social and political chaos engulfed Indonesia, has denied wrongdoing.

During his years in power the former general sharply raised incomes in Indonesia, but political freedom was curtailed and graft was endemic.

Critics say Suharto and members of his family corruptly amassed up to 45 billion dollars, accusations they deny.

In a rare interview in late 1998, Suharto rejected speculation he had stashed wealth overseas.

''The fact is I don't even have one cent of savings abroad, don't have accounts at foreign banks, don't have deposits abroad and don't even have any shares in foreign firms,'' he said.

REUTERS AB HT1710