Consortium urged to pay persisting debts for SEAG

Consortium urged to pay persisting debts for SEAG

JAKARTA (JP): The management board of the Senayan sports
complex called on Wednesday for the establishment of a deadline
by which time the Southeast Asian (SEA) Games underwriting
consortium must settle its debts.

The vice chairman of the board, Agung Laksono, hinted that he
was losing his patience after the consortium failed to live up to
its assurances that it would begin paying its debt in
installments beginning in October of last year.

"I've heard that the consortium has not even said anything,
let alone shown up. (If this continues) I won't hesitate if the
board and other creditors seek a legal settlement," Agung said
after meeting with the board's executive directors.

Agung, who is also State Minister of Youth Affairs and Sports,
said he expected that all institutions which lent money to the
consortium could agree on a deadline for the debt repayments.

But before imposing the deadline, Agung said he wanted to hear
from the consortium all the problems which had caused the
arrears.

"I want both the lenders and debtor to talk to each other and
solve the matter," Agung said, adding that the meeting is
expected to take place at the end of the month.

The consortium, chaired by one of former president Soeharto's
sons, Bambang Trihatmodjo, was responsible for raising funds to
finance the Sea Games here in October 1997.

In its audit report, the consortium declared a Rp 68 billion
deficit. The loss excluded the Rp 46 billion the consortium owed
to the Senayan management board, the Jatiluhur reservoir
authorities, hotels which accommodated participating athletes
during the biennial event and the Ministry of Forestry.

Agung said he also heard that the consortium would ask for an
exemption of Rp 35 billion in reforestation funds which it
borrowed from the forestry ministry in 1997 with a then market
interest rate of 15 percent per annum.

The consortium argued that it did not receive the money from
the forestry ministry, but from the office of the minister/state
secretary. The consortium stated that it used the funds to
finance the national training program for the Games.

Agung said that it was up to the office of the minister/state
secretary whether or not it would grant the consortium's appeal.

"It's impossible for me to intervene. But I personally think
the consortium has to pay back its debts as promised," he said.

The minister/state secretary is the ex officio chairman of the
sports complex management board.

In discussions about the 20th SEA Games in Brunei Darussalam
in August, Agung supported suggestions that the National Sports
Council pick younger athletes for the event.

"We unnecessarily field world-class athletes at the SEA
Games," he said. "Our main focus in the future should be to
improve athletes' achievements in major events such as the Asian
Games and the Olympics."

"We may risk failing to win the most gold medals, but ... we
must work hard to boost our young athletes' performances in order
to retain our supremacy in the region," he added.

Agung said the government, the sports complex management board
and the people should work together to provide the Rp 17 billion
(US$2.125 million) needed to groom national athletes for the
Games. (yan)