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)