Agung reveals 19th SEA Games fund raising scam
JAKARTA (JP): State Minister of Youth Affairs and Sports Agung Laksono admitted yesterday that irregularities in the sale of stickers to raise funds for the 19th Southeast Asian Games had cost organizers more than Rp 1 billion.
Agung, however, refused to give details of the irregularities, but promised to follow up on the finding with all possible legal measures.
"An audit discovered minor misdemeanors involving the sale of stickers in certain areas," Agung told a media conference held to announce results of the audit.
The audit of the SEA Games consortium was conducted by KPMG Hanadi Sudjendro and Co, a firm of public accountants.
Agung declined to identify the persons or institutions involved and said he had a duty to presume they were innocent until otherwise proven.
"Although we already know the names of the alleged offenders, we suggest the public respect the principle which presumes innocence," he said, adding that they would be brought to court if sufficient evidence became available.
National Sports Council Chairman Wismoyo Arismunandar and the consortium's executive chairman Bambang Yoga Sugama were also present at the conference.
Agung declared the case over following yesterday's announcement of the audit.
"The consortium's willingness to hold a media conference today shows their commitment to transparency and accountability. So, there is nothing to worry about," he said.
Yoga said irregularities might have occurred in the transfer of money from PT Angkasa Rona Graha, a company commissioned by the consortium to sell stickers.
Telephone subscribers, electricity consumers, air travelers and motorists extending driving licenses were forced to purchase the stickers, despite a 1996 Minister of Social Services decree which stated people were free to choose whether or not to buy the stickers.
Yoga said yesterday the company had agreed to raise Rp 50 billion from the ticket sales, but managed only Rp 18.75 billion before their sales permit was revoked on July 1, 1997, following complaints from the public.
He said the consortium, chaired by President Soeharto's son Bambang Trihatmodjo, then cooperated with state-owned electricity company PT PLN, the Ministry of Transportation and Tourism, the Ministry of Post and Telecommunications, and provincial revenue agencies to continue the sales.
The consortium earned an additional Rp 24,474 billion from sales through these avenues.
"They all fulfilled their commitments and provided written details of their activities," Yoga said.
Fund raising conducted from December 1996 to December 1997 amassed Rp 44,244 billion, 51 percent of the consortium's total revenue.
The SEA Games, held in October last year, cost the consortium Rp 156 billion, well above the initial estimate of Rp 75 billion. The consortium revealed that it suffered a Rp 64 billion loss in it recently published financial report.
Yoga said the consortium covered the deficit with a loans of Rp 10 billion and Rp 13 billion from Bank Andromeda (now Bank Alfa) and Bank Artha Graha respectively.
Bank liabilities aside, the consortium still owes Rp 8 billion to other companies, including sports clothing and equipment manufacturers, and hotels.
"I hope we can settle our debts, except for the bank debts, within the next six months," Yoga said.
He added the consortium's members had pledged to cut their personal salaries to help cover the debts. (emf)