Consortium seeks to write off Games debt
Consortium seeks to write off Games debt
JAKARTA (JP): The underwriting consortium for the 19th
Southeast Asian (SEA) Games have urged high-ranking officials to
ask President B.J. Habibie to take over its Rp 35 billion
(US$522,388) debt to the State Secretary.
State Minister of Youth Affairs and Sports Agung Laksono and
Deputy Attorney General for Civil and State Administration
Affairs Wan Jacob Rahim Saleh met with the consortium's executive
director Bambang Riyadi Soegama on Thursday.
They said they were confident the consortium, chaired by
former president Soeharto's son Bambang Trihatmodjo, could not
pay its overall debt, which has reached Rp 156 billion, from an
estimated Rp 75 billion when the financial crisis hit the country
in mid-1997.
"The government could only take over the Rp 35 billion debt
with its annual interest rate of 15 percent. But the consortium
still has to pay its other debt to other parties, including
immediate payment of Rp 1.73 billion to hotels.
"The President must provide a policy to help the consortium as
a way to solve the problem," Agung said after the meeting.
The consortium still owes Rp 1.73 billion to the Gelora
Senayan Management Board (BPGS) and the Hotel Atlet Century Park.
Agung threw his weight behind the consortium, saying it had no
idea that controversial funding of Rp 35 billion came from
reforestation funds.
"They (the consortium) only knew that the money came from the
State Secretary. Even I and the former state minister of youth
affairs and sports did not know."
The consortium was responsible in raising funds to finance the
biennial event, held here in October 1997. It had earlier
requested the government waive all its debts, because the event
ran at a major deficit.
Agung, who is also the vice chairman of BPGS, said based on a
financial auditing report from KPMG public auditor, the
consortium did not embezzle the money, but used it solely for the
purpose of the Games.
Jacob urged the government to share the responsibility of
staging the event and not place the burden on the consortium
alone.
"If the President doesn't want to take over the debt, at least
he can tell the State Secretary to reschedule the debt. We don't
want any delays. The consortium spent more than it had to and it
can't pay it back. The government, the nation and this country
benefited from its efforts. Why we must assign it with more of a
burden to pay the overall debt," he said.
Bambang Yoga said he was relieved on hearing the affirmation
of the top officials.
"I am pleased to hear the decision. At least they believe the
audit report on the use of the money. We want to win back the
people's confidence, so they will help sports development," he
said, adding that the consortium would pay all its debts to the
third parties this month. So far, it has paid Rp 18 billion of Rp
25 billion. (ivy)