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)