Soeharto transferred state money to crony`s firm: witness

Achmad Kuntjoro, former finance director of Kiani Sakti, was quoted by AFP as telling the South Jakarta district court that the pulp and paper company received 150 billion rupiah (16 million dollars) from the foundation.

The company was owned by Bob Hasan, one of Soeharto's closest and most trusted associates.

Kuntjoro said that the foundation gave the money to the company as a loan.

But asked by the judge what kind of loan guarantee was provided, he replied: "There was no loan guarantee for that."

Kuntjoro said that Kiani Sakti only returned about half the amount back to the foundation before the company collapsed.

The trial is to resume on December 4.