Suharto son questioned in Indonesian graft case

JAKARTA, Aug 16 (Reuters) The son of former Indonesian President Suharto was being questioned at the attorney general's office today over a 175 billion rupiah (18.6 million dollar) graft case.

Hutomo ''Tommy'' Mandala Putra, youngest son of the former autocratic leader, was recently named a suspect in the case, related to alleged misuse of central bank assistance given to a lucrative clove monopoly agency he chaired in the 1990s.

The agency, known as BPPC, was set up by then-President Suharto to protect clove farmers from fluctuating prices.

Tommy, who appeared relaxed, was met by dozens of journalists on his arrival at the attorney general's office.

He said BPPC's 569 billion rupiah of debt owed to the central bank was paid by a state-owned bank in 1993 and the agency settled its debt with that bank two years later.

''There were no non-performing loans or outstanding payments from members of the BPPC,'' he told reporters, showing a letter from the central bank certifying the debt settlement.

Tommy did not show up for questioning last week after his lawyer said he was sick and required bed rest.

Last month, prosecutors filed a civil suit against Suharto senior seeking to recover hundreds of millions of dollars in state funds allegedly misused by one of his charitable foundations.

The former president, who resigned in 1998 amid civil unrest, was himself charged with graft but escaped prosecution after he was deemed too ill to stand trial. Both he and his family members deny any wrongdoing.

President Susilo Bambang Yudhoyono came to power in 2004 promising to tackle endemic graft, and officials ranging from former ministers to provincial governors have been jailed on corruption charges.

But the anti-graft drive is being closely watched after critics say it has failed to take on some powerful vested interests.

Cases against the Suharto family have often failed to make ground, prompting accusations that Indonesia's legal system can be bent in favour of the rich and powerful.

Tommy, 44, was conditionally released from jail last October, after serving a third of his original sentence for plotting the murder of a Supreme Court judge who had convicted him in another graft case.

Like other Suharto children, Tommy became a super-rich business mogul during his father's three-decade rule. Some of his projects have been linked to political influence and corruption, including the clove monopoly and a failed national car project.

REUTERS RJ HT1142