Gelora denies SEAG consortium payment
Gelora denies SEAG consortium payment
JAKARTA (JP): The Gelora Senayan management board denied
reports that it had received payment from the 19th Southeast
Asian (SEA) Games underwriting consortium, executive director
Yasidi Hambali said on Thursday.
"As far as I know, we haven't received anything," he said.
A deputy chairman of the board, Agung Laksono, in his capacity
as state minister of youth affairs and sports, told members of
the House of Representatives Commission VII for sports on
Wednesday evening that the consortium had paid part of its debt
arrears amounting Rp 5.5 billion (US$642,800) to hotels which
accommodated the participating athletes, banks, lawyers and
companies.
Yasidi said the consortium, chaired by Bambang Trihatmodjo,
the son of former president Soeharto, had not settled its debts
yet and was repaying them in installments.
"We just hope the Rp 1.1 billion debt to the Hotel Atlet
Century Park is made a priority in its debt payment list," Yasidi
said.
"We are also willing to reschedule the debts if the consortium
wants to discuss it with us," he said.
The hotel's management was not available for comment.
Agung told the House he planned to hold a meeting between the
consortium and its creditors to reach a settlement on the debt
payment.
"Its a good idea to bring the two sides together on one table.
We are looking forward to receiving the invitation," Yasidi said.
The consortium, who was responsible for staging the Rp 105
billion sports event, begged for a waiver of its debts to the
board in May last year, pleading financial constraints.
In its audit report, the consortium declared a Rp 68 billion
deficit for staging the Games in October 1997. The financial loss
excluded Rp 46 billion in debts the consortium owes to the
Senayan management board, the Jatiluhur reservoir authorities and
hotels. The debts included Rp 35 billion owed to the Ministry of
Forestry's reforestation fund.
The consortium had promised to approve a legal settlement if
it failed to pay the debts.
Yasidi said he would not sue the consortium as he still hoped
to solve the problem peacefully.
Speaking of the National Sports Council's preparations for the
20th SEA Games in Bandar Seri Begawan in August, Yasidi said the
Senayan management board would allow all sports organizations to
use sports venues free of charge if they could not afford to pay
the rental fees.
"Our principle is to help the sports organizations prepare our
athletes for the event. If they are able to pay the rent, then we
can negotiate the price," he said.
Yasidi also said he still had no idea if the Senayan
management board would assist the council financially. (yan)