The evidence of Akbar Tanjung's involvement is very strong

Mulyoharjo, attorney general's spokesman

Mr Tandjung is accused of siphoning off state funds for his own party's election campaign.

He has denied the allegations. But the case could broaden to include many of the other major political parties.

The announcement by the attorney general was a sensational one - even by Indonesian standards where corruption has become the norm rather than the exception.

Akbar Tandjung, Speaker of Parliament and leader of the former ruling Golkar party, is accused of taking $4m of state funds - money, it is alleged, which the president at that time, BJ Habibie, had said should be used to purchase food for the poor.

"The evidence of Akbar Tandjung's involvement is very strong," Mulyoharjo, the attorney general's spokesman, said. "Based on statements from witnesses, the money from the National Logistics Agency, BULOG, was transferred by people Mr Tandjung appointed.

"In fact he didn't have the authority to do so. And he says the money went to the Islamic charity, Raudlatul Jannah, but investigations show that it didn't make it to the people who needed it," he said. "Most of the money was not transferred to the right place."

Election money

Mulyoharjo said they are still trying to determine exactly how they believe the money was used. It is alleged that it was taken by Golkar to help it contest the country's first democratic election held in 1999.

But according to the attorney general's office, the person who actually cashed the cheques used a fake identity card and has not been found.

When Akbar Tandjung was first questioned at the attorney general's office last October, he was besieged by journalists, to whom he protested his innocence.

Habibie said the money was for charity

"President Habibie had ordered that the $4m from the National Logistics Agency be used for a humanitarian programme in the form of gifts of food for the poor," he said.

Mr Tandjung insists the money was handed over to the Islamic charity for this purpose and that he cannot be held responsible for how the charity actually used it.

But it took him a week to remember the name of the organisation when first asked about it.

Party pressure

While the investigation continues, Mr Tandjung is coming under increasing pressure, not least from some members of his own party.

They want him to step down as parliamentary speaker and Golkar leader.

But for the time being he has the support of senior party officials, such as Theo Sambuaga.

"Even though he is a suspect, he is still the general chairman of Golkar and we will support his effort to prove that he is not guilty," Mr Sambuaga said.

The attorney general named Tandjung as a suspect

But there is no doubt this is a critical moment for the Golkar party which, under former president Suharto, ruled the country for almost 30 years and is still the second largest in parliament - a point admitted by Mr Sambuaga when discussing the impact of the scandal.

"[This is] very damaging because Akbar is the chairman of Golkar. It would make our image very poor among the people," he said.

"During this last couple of months, the public opinion has been developed to accuse not only Akbar but Golkar itself - and not only to accuse but to... decide we are guilty.

"That's why we ask for fairness and justice during the legal process, not have it politicised."

Golkar woes

There is even speculation that Golkar could disintegrate as a result of this scandal as the different factions within the party now come to the fore.

But it is not just Golkar which could find itself in trouble over this issue, according to the leading political commentator Yusef Winandi.

"As you might have heard around, in the rumour mill at least of Jakarta, everybody has got some money from Habibie then," Mr Winandi said. "So therefore, everybody is saying 'who is daring to throw the first stone?'.

"So the scandal can open a Pandora's box where they could be also accountable in the future."

The question then is whether the authorities will pursue this case vigorously over the coming months or if, as in the past, the ruling elite will close ranks to protect itself.