Consortium seeks to write off Games debt<\/p>\n
JAKARTA (JP): The underwriting consortium for the 19th
\nSoutheast Asian (SEA) Games have urged high-ranking officials to
\nask President B.J. Habibie to take over its Rp 35 billion
\n(US$522,388) debt to the State Secretary.<\/p>\n
State Minister of Youth Affairs and Sports Agung Laksono and
\nDeputy Attorney General for Civil and State Administration
\nAffairs Wan Jacob Rahim Saleh met with the consortium's executive
\ndirector Bambang Riyadi Soegama on Thursday.<\/p>\n
They said they were confident the consortium, chaired by
\nformer president Soeharto's son Bambang Trihatmodjo, could not
\npay its overall debt, which has reached Rp 156 billion, from an
\nestimated Rp 75 billion when the financial crisis hit the country
\nin mid-1997.<\/p>\n
"The government could only take over the Rp 35 billion debt
\nwith its annual interest rate of 15 percent. But the consortium
\nstill has to pay its other debt to other parties, including
\nimmediate payment of Rp 1.73 billion to hotels.<\/p>\n
"The President must provide a policy to help the consortium as
\na way to solve the problem," Agung said after the meeting.<\/p>\n
The consortium still owes Rp 1.73 billion to the Gelora
\nSenayan Management Board (BPGS) and the Hotel Atlet Century Park.<\/p>\n
Agung threw his weight behind the consortium, saying it had no
\nidea that controversial funding of Rp 35 billion came from
\nreforestation funds.<\/p>\n
"They (the consortium) only knew that the money came from the
\nState Secretary. Even I and the former state minister of youth
\naffairs and sports did not know."<\/p>\n
The consortium was responsible in raising funds to finance the
\nbiennial event, held here in October 1997. It had earlier
\nrequested the government waive all its debts, because the event
\nran at a major deficit.<\/p>\n
Agung, who is also the vice chairman of BPGS, said based on a
\nfinancial auditing report from KPMG public auditor, the
\nconsortium did not embezzle the money, but used it solely for the
\npurpose of the Games.<\/p>\n
Jacob urged the government to share the responsibility of
\nstaging the event and not place the burden on the consortium
\nalone.<\/p>\n
"If the President doesn't want to take over the debt, at least
\nhe can tell the State Secretary to reschedule the debt. We don't
\nwant any delays. The consortium spent more than it had to and it
\ncan't pay it back. The government, the nation and this country
\nbenefited from its efforts. Why we must assign it with more of a
\nburden to pay the overall debt," he said.<\/p>\n
Bambang Yoga said he was relieved on hearing the affirmation
\nof the top officials.<\/p>\n
"I am pleased to hear the decision. At least they believe the
\naudit report on the use of the money. We want to win back the
\npeople's confidence, so they will help sports development," he
\nsaid, adding that the consortium would pay all its debts to the
\nthird parties this month. So far, it has paid Rp 18 billion of Rp
\n25 billion. (ivy)<\/p>",
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