Fri, 24 Oct 1997

Consortium owes banks Rp 40b for SEA Games

JAKARTA (JP): The 19th SEA Games consortium has borrowed Rp 40 billion (US$11.1 million) from banks to cover its spending during the Rp 105 billion biennial event.

State Minister of Youth Affairs and Sports Hayono Isman said after meeting President Soeharto at Merdeka Palace yesterday that the consortium had to return the money by October next year with 15 percent interest.

"The government did not give any direct assistance, including presidential aid, except by ordering the interest rate to be lower than the normal 40 percent," Hayono said.

He declined to mention which banks provided the cash.

Hayono said the consortium expected to raise more money through the sticker sales extension from Oct. 11 to Dec. 31.

The consortium will publish its accounts in the next month. These which will be audited by registered public accountants.

The consortium reported that it received Rp 4.2 billion from state-owned PT Telkom, Rp 2.95 billion from state-owned PT PLN and Rp 14.06 billion from other sticker sales. It has also received Rp 18.75 billion from PT Angkasa Rona Graha, which was appointed by the consortium to collect the money from the sale of stickers.

The consortium received pledges of Rp 20 billion from sponsors. But some advertisers, particularly those at the track and field and swimming venues which featured a variety of sponsors, may not pay their full pledges. The Association of National Private Banks gave Rp 1.5 billion.

"In total the consortium has received Rp 39.96 million since the beginning of the fund-raising effort," Hayono said.

"The Indonesian Consumers Foundation estimated the consortium would be able to raise Rp 72 billion but the consortium said it had only collected Rp 39.96 billion.

"It's difficult for us to know the full truth until we get the information from PLN, Telkom, the Ministry of Transportation and the driving license extension office," he said.

Hayono urged the foundation not to call on the public to boycott the sticker sales.

"I hope the foundation will be more patient and not make such unnecessary calls. After the foundation receives the audited reports, I don't mind if it gives comments or makes calls," he said at his office later.

"I think the public help, by paying for the stickers, is useful because our athletes have won an unexpected number of gold medals and set many SEA Games records and a junior world record."

Hayono said sticker sales was not an appropriate way to raise funds to develop sports in the country.

"The sticker sales is only appropriate for situational events, such as the SEA Games and the National Games. But for a longer- term sports development program, it's improper."

"My office is discussing with the Office of the Coordinating Minister for Production and Distribution to find an alternative way to support sports development. It must not be via gambling, cause a burden to the public or affect the high cost economy."

Apology

Hayono said he had also apologized to the President for the chaos during Saturday's Games men's soccer final and the basketball semifinals on Friday, which was attended by the Philippines' National Olympic Committee chairwoman, Christina Ramos-Jalasco.

"The President was silent but I think we have to realize we must not have a repeat of such a humiliating situation in the future. The chaos was not because the matches were for free but because we still need to give the public attitude lessons."

"If only the public could be patient, I think Indonesia would not have got the silver. Our players were stressed by the brutal spectators' behavior," he said.

Hayono also expressed his disappointment at a statement by Hotel Mulia, which said that the hotel would be a business hotel and not an athletes hotel.

The hotel's public relations manager, Ira Maya Sopha, said that the hotel was only built to accommodate the Games athletes. "Now the event has finished, the hotel will be open to the public and won't provide special floors for athletes."

Hayono said: "I was very shocked to hear that but I'll check it with the hotel's director, Joko S. Tjandra."

Allowances

Hayono also promised nearly 100 youths who went to his office yesterday to discuss their allowance problems with the Games organizers.

About 660 youths who took part in the opening and closing ceremonies, have complained that they received unfair treatment compared to the flag and participating countries' board carriers.

Wing Prasetyo, representing the youths, said they only received Rp 200,000 for transportation fees but some of them had had to stay in Bandung and Bogor.

"But the flag and board carriers got more money and they got better costumes and meals during the practices," he complained.

Hayono asked them to return today to hear the results of his discussions. (prb/yan)