Games organizer begs off paying insurance pledge
Games organizer begs off paying insurance pledge
JAKARTA (JP): Almost a year after its grandiose finale, the
19th Southeast Asian (SEA) Games is in the throes of yet another
in a long line of financial woes after its underwriting
consortium admitted it cannot afford to pay life insurance
premiums to Indonesian gold medal winners.
National Sports Council chairman Wismoyo Arismunandar revealed
on Monday that the council plans to provide the debt-ridden
consortium Rp 4.8 billion (around US$600,000) to cover the
premium costs.
Wismoyo said the bailout would be taken from the about Rp 10.5
billion fund the council has raised to finance transportation
expenses and board and lodging of the national contingent for the
13th Asian Games in Bangkok in December.
"It's our obligation to keep national athletes feeling secure
because they have fought for the country. I want the council to
pay the premiums before I finish my term, so that my successor
will not have to carry the burden," Wismoyo said after receiving
a Rp 2 billion grant from the Gelora Senayan management board.
Wismoyo's four-year term in office will end early next year.
Apart from raising Rp 156 billion to finance the region's
sports event hosted by Indonesia in October last year, the
consortium -- chaired by Bambang Trihatmodjo, a son of former
president Soeharto -- agreed to provide rewards to the country's
gold medalists in the form of life insurance policies.
Each policy, worth Rp 20 million, will be paid in four
installments over four consecutive years. Gold medalists in team
events were also rewarded the insurance policies, although the
amounts are smaller.
Deficit
Indonesia romped home with 194 golds, plus 101 silvers and 115
bronzes, to regain its sports supremacy in Southeast Asia.
The council's treasurer deputy, Titiek Ratna, said the
consortium paid the first installment on the premium last year.
In its audited report, the consortium reported a Rp 68 billion
financial loss. It received a Rp 23 billion loan from Bank Artha
Graha to ease the deficit.
In addition, it borrowed Rp 35 billion from the government's
reforestation fund, with an interest rate of 15 percent per
annum. It owes Rp 11 billion to the Senayan management board, the
Jatiluhur water reservoir authorities and hotels which
accommodated participating athletes during the SEA Games.
The consortium has promised to pay its debts over the next two
years, starting this month.
The Senayan management board was the last institution to give
the sports council financial aid after the government and the
Association of Indonesian Wood Panel Producers.
Wismoyo said he expected to receive more funds from governors
whose provincial athletes have been selected to don the national
colors in the Asiad. The East Java administration has promised to
contribute Rp 500 million while the West and Central Java
provinces will provide Rp 200 million each.
The council will have to spend Rp 3 billion to finance the
centralized training and about Rp 5 billion to cover the air
fares of 119 Asiad-bound athletes.
It will also reserve about Rp 1 billion to provide cash
bonuses for medal-winning athletes. A gold medal will earn Rp 50
million, a silver Rp 30 million and a bronze Rp 15 million.
The council has set a target of six golds, 11 silvers and 13
bronzes at the quadrennial event. (yan)