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Monday, 29 November, 1999, 16:50 GMT
Minister alleges Suharto influenced BNI bank



A committee of the Indonesian Parliament has heard new allegations against former President Suharto, involving a bank loan of about one-point-four-billion-dollars.

The minister responsible for investment and state companies, Laksamana Sukardi, says Mr Suharto breached banking laws when, in 1997, he used his influence with the Central Bank to help a major textiles company, Texmaco, obtain loans from the state bank, BNI.

He says the company defaulted on the loan, but the Indonesian Bank Restructuring Agency wasn't told.

The parliamentary committee is expected to call bank officials to answer the allegations.

Mr Suharto has previously denied allegations of corruption.

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