Indonesia defence deal probed

Indonesia's Parliament is launching an inquiry into alleged irregularities in the purchase of Russian fighter aircraft - a potentially damaging scandal for President Megawati Sukarnoputri ahead of next year's general elections.

The scandal revolves around four Sukhoi jet fighters and two MI-35 helicopters. Megawati signed the $332 million deal during a visit to Moscow in April.

Opposition MPs have accused the Government of violating legal requirements to channel all military purchases through the Defence Ministry. Megawati instead bought the aircraft using funds reserved for natural disasters.

"The Government has violated the law," parliamentary defence commission member Rizal Djalil said yesterday. "There are a lot of people who could stand to enjoy a huge amount of money through commissions and markups."

Parliament has established a committee that meets next week to begin its investigation.