Police quiz Wahid over scandal

President Wahid: Questioned but not a suspect himself

Police in Indonesia have questioned President Abdurrahman Wahid over the embezzlement of $4m from a government agency.

Correspondents say it is believed to be the first time in Indonesian history that a serving head of state has faced police questioning about a criminal matter.

The money was allegedly stolen by Mr Wahid's personal masseur, Suwondo, who is now on the run.

Mr Wahid himself is not under suspicion, and police said beforehand they would be questioning him as a witness.

Money handed back

The president gave evidence at Jakarta's state palace on Friday night, National Police spokesman Colonel Saleh Saaf said. He did not disclose details of President Wahid's statement.

A separatist guerrilla in Aceh: Jakarta is trying to defuse tension

According to the Suara Pembaruan newspaper, the police put 12 questions to Mr Wahid, who said he had last met Suwondo in November and had no knowledge of his whereabouts now.

Suwondo's wife and associates have handed back about $3.5m of the missing funds, which were allegedly stolen from the state logistics agency Bulog.

Police say Suwondo, posing as a presidential aide, convinced a senior Bulog official in January that the head of state wanted money transferred to several private bank accounts to fund charity work in Aceh, a province wracked by separatist violence.

The deputy chief of Bulog, Sapuan, admitted handing over the money to the masseur and was sacked.

Mr Wahid's state secretary, Bondan Gunawan, has already resigned over the scandal.

Funds from Brunei

Mr Wahid has publicly denied that he authorised the transfer.

He has said that he had considered using Bulog money to help Aceh, but decided instead to obtain funds for the same purpose from the neighbouring oil-rich Sultanate of Brunei.

Correspondents say the scandal has tarnished the image of Mr Wahid's government.

He came to office eight months ago promising to lead a clean and more democratic government after decades of corrupt authoritarian rule.

Economists alarmed

Opponents have criticised Mr Wahid for accepting money from Brunei without the public's knowledge and without following government accounting procedures.

Economists in particular are alarmed at the lack of a coherent economic policy, made worse by the sacking of two economics ministers in April.

Some politicians are now talking about starting impeachment proceedings against the president during the People's Consultative Assembly meeting in August.

He is likely to survive that process, if for no other reason than the lack of a viable alternative.