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Dear Friends,

Following is a media release from the Campaign Against Foreign Control of Aotearoa.

23 October 1998 Chief Reporter

LILYBANK MUST BE SEIZED

The news that Tommy Suharto's Lilybank Lodge is closed and for sale should  be the cue for the Government to stop the sale or, better still, seize the  property. There is no doubt that the overthrown Suharto family amassed their  enormous wealth by massive, institutionalised corruption. "Kleptocracy" was  the phrase applied to President Suharto's 32 years in power. Forbes estimates the wealth of him alone at $US4 billion, not including his family.

The undisputed expert on the Suharto wealth is exiled Indonesian academic,  Dr George Aditjondro. He toured New Zealand in February 1998 and attempted  to visit Lilybank (being one of the many turned away by its inhospitable  manager, Gerard Olde Olthof). Aditjondro's conclusion was succinctly summed  up in the Press headline of his visit (13/2/98): "Lodge bought on `proceeds  of corruption'".

Aditjondro has returned to Indonesia this month, and is a leading expert   assisting the Habibie government to investigate the Suharto wealth. There is   a rapidly growing movement in Indonesia calling for the seizure of the   Suhartos' illgotten gains. We call on the New Zealand government to do its   bit and seize Lilybank while evidence is assembled in Indonesia. There is   ample New Zealand precedent for property to be seized as the proceeds of crime.

The current arrest of former Chilean dictator Pinochet, in London, shows  that international law does have teeth when applied to tyrants. It is simply  a matter of political will. And patience is essential - Filipino human  rights victims filed an American class action suit against the Marcos family  as soon as they were overthrown in 1986 and have since been awarded over  $US1 billion damages. Only now, 12 years later, is any money about to be  paid to them.

The other lesson from this Lilybank fiasco is that the Government, and its  agent, the Overseas Investment Commission, needs to tighten up considerably  the criteria for foreign investors. Closely examining the children and  cronies of dictators would be a good start. Why should New Zealand get a  reputation as a safe haven to stash the loot which rightfully belongs to  their impoverished compatriots?

Murray Horton  Secretary/Organiser
Ph/fax (03) 3663988  CAFCA  Campaign Against Foreign Control of Aotearoa   PO Box 2258, Christchurch  email: cafca@chch.planet.org.nz

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