The high court yesterday ordered the release of files
disclosing payments by a leading British arms company to
the daughter of the then president of Indonesia in a
landmark ruling for
freedom of information *1.
Mr Justice Park ruled that the Guardian should be
allowed access to the court file containing witness
statements by the then chief executive of Alvis, a tank
manufacturer based in Coventry.
It had been alleged that Alvis paid UKP16,5m in bribes
to President Suharto's eldest daughter to secure a
UKP160m sale of Scorpion tanks in the mid-1990s which
were then used for internal repression.
Alvis attempted to keep the documents secret. But after
hearing arguments over three days from Anthony Hudson,
counsel for the Guardian, the high court ordered that
the newspaper could have copies of the material.
The judge said the Guardian was a serious newspaper, and
there was no reason why it could not have access to the
court file.
The witness statements formed part of the evidence in an
earlier, unreported case in which a former consultant to
Alvis, Chan U Seek, claimed UKP6m commission on the
tanks sale. "The proceedings between Alvis and Mr Chan
were not a private arbitration. They were in open court,
and unwelcome publicity for a defendant, including a
successful defendant, is not uncommonly a consequence to
any case," the judge said.
A large number of internal company memos were disclosed
in the Chan hearing, including one from the chief
executive referring to the payments to President
Suharto's daughter as "a tax". She was referred to in
company coded messages as "the lady".
But before the case could be reported, Alvis
unexpectedly settled, with a confidentiality agreement
that nothing further was to be said about the case. The
witness statements handed over yesterday, and published
on the Guardian's website today, reveal that Alvis
executives tried for years to secure the support of
influential people close to the government and the army.
Eventually they were able to hire President Suharto's
eldest daughter, known as Tutut, along with another
agent, the daughter of an army officer, to get the
backing of the army.
The 100 Scorpion light tanks were sold with the promise
from the Indonesian regime that they would not be used
for internal repression. However, they were subsequently
discovered in action in the breakaway province of East
Timor and in Aceh. The sales were backed by the British
government's Export Credits Guarantee Department, which
was left to pick up a UKP93m bill when Indonesia ran
into a financial crisis. President Suharto was ousted
and Indonesia has asked to postpone payment of its
debts.
Susan Hawley, of the anti-corruption campaign the Corner
House, said the
Export Credits Guarantee Department "should have spotted
that the president's daughter was involved *2.
Why didn't alarm bells ring?"
Tapol, the Indonesian human rights campaign, called for
a full investigation by both British and Indonesian
governments. Its spokesman said: "The allegations
further strengthen the case for a freeze on British arms
sales to Indonesia. This immoral and corrupt trade will
do nothing to promote democracy or development in the
country."
Alvis is now owned
by BAE Systems. Richard Coltart,
BAE spokesman, said: "We have no comment on this matter
other than to point out that it relates to an Alvis
issue before our ownership of the company."
Former president Suharto's daughter, Tutut, declined to
comment on the allegations. An aide told the Guardian on
condition of anonymity:
"Of course Ms Tutut was
involved in these deals but I'm sure she did nothing
illegal."
Alan Rusbridger, the Guardian's editor, said yesterday:
"This is an important judgment for the press. The judge
has recognised that it's important that newspapers are
free to cover court proceedings - and that, in the
modern world, it's difficult, if not impossible, to do
so without access to the court file.
"Journalists should now find it easier to view court
documents, which is only appropriate on the
eve of the introduction
of a Freedom of Information Act."
See the evidence
With acknowledgements to
David Leigh, David Pallister,
Rob Evans, John Aglionby and The Guardian.
*1
Viva Park J, Viva.
*2 In this country :
- What about the Minister of Defence's
brother-in-law?
- What about the Chief of Acquisitions's brother?
- What about the then Deputy President's brother?
Lambert Moloi
Schabir Shaik
Moeletsi Mbeki