KONI urges group to honor promises
KONI urges group to honor promises
JAKARTA (JP): National Sports Council (KONI) chairman Wismoyo
Arismunandar urged the 1997 Southeast Asian (SEA) Games
underwriting consortium to fulfill its obligation to pay the
insurance premiums for Games medalists.
"The consortium promised that it would provide insurance
bonuses to medalists at the Games. But it has failed to do so and
KONI has the moral responsibility to take over the debt and pay
for the insurance premiums," Wismoyo said after meeting with a
representative of the consortium and members of KONI's internal
audit team on Monday.
"We don't want athletes to be disappointed with the
consortium's inability to pay the insurance premiums and have to
cancel the bonuses," he said.
The chairman of KONI's internal audit team, I Putu Gde Ary
Suta, said the council had urged the consortium to pay the
premiums, but added that the consortium's representative had not
yet confirmed whether it could do so.
"However, the consortium committed to pay the debt. This shows
their responsibility. The consortium's debt has disrupted KONI's
financial condition. As an internal auditor, I know that KONI has
limited funds nowadays," he said.
According to an audited financial report by public accountant
Richard Tanubrata, KONI has a Rp 2.7 billion (US$360,000) claim
on the consortium. The money was used to pay for the annual
premiums of athletes' insurance bonuses.
If the consortium fails to pay the claim, this figure will
increase to Rp 4.5 billion by the end of the premium payment term
in 2002.
Ary Suta said KONI would soon meet again with the consortium,
and expressed hope the consortium's chairman would be able to
attend.
The consortium, chaired by former president Soeharto's son
Bambang Trihatmodjo, was appointed to raise funds to finance the
annual event. It failed to raise the Rp 150 billion needed to
stage the Games, and eventually the consortium was found to owe
Rp 35 billion in reforestation funds from the State Secretary.
Ary Suta said the Rp 35 billion was not his responsibility as
the consortium borrowed the money from the government.
Wismoyo said he was aware the consortium had failed to pay its
debt to KONI because it was bankrupt. However, he said if the
consortium could repay its debt, the money would be useful in
funding the training of athletes for the Olympic Games in Sydney
from Sept. 15 to Oct. 1.
KONI has collected Rp 2 billion from the Gelora Senayan
Management Board and Rp 500 million surplus from the 1999 SEA
Games budget to fund the Olympic training. Another Rp 4.9 billion
from the National Development and Planning Board has not yet been
received.
Wismoyo said the council's audited financial report would be
unveiled at a KONI meeting on Feb. 10 and at the council's
national workshop on Feb. 15 and Feb. 16. (yan)