No reprieve for 19th SEA Games consortium over debt
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)