Games organizer begs off paying insurance pledge<\/p>\n
JAKARTA (JP): Almost a year after its grandiose finale, the
\n19th Southeast Asian (SEA) Games is in the throes of yet another
\nin a long line of financial woes after its underwriting
\nconsortium admitted it cannot afford to pay life insurance
\npremiums to Indonesian gold medal winners.<\/p>\n
National Sports Council chairman Wismoyo Arismunandar revealed
\non Monday that the council plans to provide the debt-ridden
\nconsortium Rp 4.8 billion (around US$600,000) to cover the
\npremium costs.<\/p>\n
Wismoyo said the bailout would be taken from the about Rp 10.5
\nbillion fund the council has raised to finance transportation
\nexpenses and board and lodging of the national contingent for the
\n13th Asian Games in Bangkok in December.<\/p>\n
\"It's our obligation to keep national athletes feeling secure
\nbecause they have fought for the country. I want the council to
\npay the premiums before I finish my term, so that my successor
\nwill not have to carry the burden,\" Wismoyo said after receiving
\na Rp 2 billion grant from the Gelora Senayan management board.<\/p>\n
Wismoyo's four-year term in office will end early next year.<\/p>\n
Apart from raising Rp 156 billion to finance the region's
\nsports event hosted by Indonesia in October last year, the
\nconsortium -- chaired by Bambang Trihatmodjo, a son of former
\npresident Soeharto -- agreed to provide rewards to the country's
\ngold medalists in the form of life insurance policies.<\/p>\n
Each policy, worth Rp 20 million, will be paid in four
\ninstallments over four consecutive years. Gold medalists in team
\nevents were also rewarded the insurance policies, although the
\namounts are smaller.<\/p>\n
Deficit<\/p>\n
Indonesia romped home with 194 golds, plus 101 silvers and 115
\nbronzes, to regain its sports supremacy in Southeast Asia.<\/p>\n
The council's treasurer deputy, Titiek Ratna, said the
\nconsortium paid the first installment on the premium last year.<\/p>\n
In its audited report, the consortium reported a Rp 68 billion
\nfinancial loss. It received a Rp 23 billion loan from Bank Artha
\nGraha to ease the deficit.<\/p>\n
In addition, it borrowed Rp 35 billion from the government's
\nreforestation fund, with an interest rate of 15 percent per
\nannum. It owes Rp 11 billion to the Senayan management board, the
\nJatiluhur water reservoir authorities and hotels which
\naccommodated participating athletes during the SEA Games.<\/p>\n
The consortium has promised to pay its debts over the next two
\nyears, starting this month.<\/p>\n
The Senayan management board was the last institution to give
\nthe sports council financial aid after the government and the
\nAssociation of Indonesian Wood Panel Producers.<\/p>\n
Wismoyo said he expected to receive more funds from governors
\nwhose provincial athletes have been selected to don the national
\ncolors in the Asiad. The East Java administration has promised to
\ncontribute Rp 500 million while the West and Central Java
\nprovinces will provide Rp 200 million each.<\/p>\n
The council will have to spend Rp 3 billion to finance the
\ncentralized training and about Rp 5 billion to cover the air
\nfares of 119 Asiad-bound athletes.<\/p>\n
It will also reserve about Rp 1 billion to provide cash
\nbonuses for medal-winning athletes. A gold medal will earn Rp 50
\nmillion, a silver Rp 30 million and a bronze Rp 15 million.<\/p>\n
The council has set a target of six golds, 11 silvers and 13
\nbronzes at the quadrennial event. (yan)<\/p>",
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