Indonesia's parliament today overwhelmingly accepted a damaging report that could lead to moves to impeach President Abdurrahman Wahid, as thousands of rival demonstrators faced off outside.

An overwhelming eight out of the 10 lower house factions, including the military and police, accepted the results of a parliamentary probe which found Wahid "could be suspected of playing a role" in two financial scandals involving a total of almost six million dollars.

The president's sole supporters were his own National Awakening Party and the small Christian-based Love for the Nation.

Wahid's party slammed the report, insisting it was only loosely based on fact and subject to "distortion and interpretation."

But as night fell and the thou-

sands of pro- and anti-Wahid protestors outside parliament and the presidential palace dispersed peacefully, it was unclear whether parliament would censure Wahid.

A censure motion against the country's first democratically-elected president, would be the first step towards possible impeachment proceedings in four months time.

Among the first to move against Wahid were the country's three largest political parties, including the Indonesian Democracy Party of Struggle (PDIP) led by Wahid's own Vice President Megawati Sukarnoputri, the Golkar Party and the Muslim-oriented Uniteed Development Party (PPP).

The MPs in the 500-seat house voted 393 to four, amid an angry walkout by more than 50 Wahid supporters, to accept the motion.

Later they were huddled in lob bying groups on whether or not to censure Wahid, with some predicting the process could drag on late into the night.

The probe investigated the embezzlement of 35 billion rupiah (3.9 million dollars) from the state food distribution agency Bulog, and also found Wahid was "inconsistent" in explaining how he spent a two million dollar donation from the Sultan of Brunei.

"If we find the president has violated the MPR (upper house or People's Consultative Assembly) guidelines we will issue him with a memorandum," Laksamana Sukardi of the PDIP said earlier.