Debt settlement solution sought

JAKARTA (JP): Representatives of the Attorney General's Office have offered a helping hand to the Gelora Senayan Management Board (BPGS) in finding a solution to the settlement of a debt owed by a consortium assigned to manage the 19th Southeast Asian Games.

Minister of Youth Affairs and Sports Agung Laksono said on Tuesday that the representatives visited him several weeks ago to ask for an explanation of a media report about the possible writing off of the debt.

"The representatives from the Attorney General's Office said they would help us with a legal settlement if the consortium failed to pay off its debt," said Agung, who is also a BPGS vice chairman.

Last week, Gelora Senayan sports complex's board of directors agreed to write off a Rp 1 billion debt owed by a consortium assigned to manage the biennial event held here in October 1997, but the final decision would be the State Secretariat's.

The consortium incurred the debt through preparing venues at which to stage various competitions and training programs.

Minister Agung said the consortium had repeatedly asked for the debt to be written off, citing financial constraints as the main reason.

"When the consortium took over the deal to support the Games, it pledged to pay in installments. However, it never paid the installments. It only paid third parties. They had a logical argument that the money was used for the training program, which was a way to promote the nation's name in international sports," he said. The third parties were those who gave services to the athletes, such as cleaning or catering services.

He said, however, that the State Secretariat insisted the consortium pay off its debt.

"But if the State Secretariat agrees to the write-off, then the debt business is over. I hope concrete action will be taken immediately, because the money belongs to the State Secretariat," Agung said, adding that the debt write-off would also need approval from the Ministry of Finance.

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

In its audit report, the consortium declared a Rp 68 billion deficit. The financial losses excluded Rp 46 billion in debts the consortium owes to the Senayan management board, the Jatiluhur reservoir authorities and hotels which accommodated participating athletes during the event as well as the Ministry of Forestry.

The consortium's executive director, Bambang Riyadi Soegama, told minister Agung last September that it had not embezzled the money. Soegama also said the consortium would approve of a legal settlement if it failed to pay off its debt.

The Attorney General's Office is currently investigating allegations of corruption, collusion and nepotism involving Soeharto, his families and cronies. Attorney General Andi M. Ghalib earlier vowed to have the investigation completed before the People's Consultative Assembly's General Session in August. (ivy)