No reprieve for 19th SEA Games consortium over debt

JAKARTA (JP): State Minister of Sports and Youth Affairs Agung Laksono has supported the decision made by the management of the Gelora Senayan sports complex to refuse to waive the 19th SEA Games underwriting consortium's Rp 1 billion (US$100,000) debt.

"I can fully understand Gelora Senayan's decision. They are directly influenced by the debts as they are the ones who have to initially cover the expenses," Agung said yesterday.

He stressed that the consortium's amassed debts were its responsibility and no one else's. "I think leniency is still likely to be given but not an exemption," he added.

The minister, however, said that the final decision would be made at a meeting with Minister/State Secretary Akbar Tandjung and Jakarta Governor Sutiyoso.

The date of the meeting has yet to be decided but Agung pledged to propose one immediately.

Agung reiterated that apart from the consortium's debt record, it successfully carried out the onerous task assigned to it; namely to be the first private party to stage a prestigious sporting event like the SEA Games.

"We also have to give them credit for what they achieved, the Games was a big success," he said.

On Friday Gelora Senayan director Yasidi Hambali said that he would refuse to waive the debt as the management had spent their operational funds to cover the expenses like phone bills, water charges and workers' salaries.

The consortium originally owed at least Rp 3.5 billion, excluding financial losses accrued from damage caused during violence in the soccer competition.

"The debt was reduced to Rp 1 billion at the consortium's request," Yasidi said.

The executive chairman of the consortium, Bambang Riyadi Sugama, officially pleaded for exemption to clear the debts to Gelora Senayan management on May 25.

He requested the debt clearance as compensation for the funds used to build an artificial hockey pitch and to install a new sound system for the complex, Yasidi said.

The consortium, chaired by former president Soeharto's son Bambang Trihatmodjo, reportedly spent Rp 156.6 billion staging the biennial sporting event, far above the estimated budget of Rp 75 billion.

An audited financial report made by public accountant KPMG Hanadi Sudjendro and Co., discovered a deficit of Rp 64 billion and also unveiled a Rp 1.8 billion scam in the sale of stickers sold to raise funds for the Games. (emf)