Sat, 25 Apr 1998

Police asked to probe Games sticker scam

JAKARTA (JP): State Minister of Youth Affairs and Sports Agung Laksono has asked the police to investigate an alleged scam in the sale of stickers to fund the 19th Southeast Asian Games here last year.

Agung said yesterday that he would officially hand over the case to the city police on Monday.

"We decide to bring the case to the police after finding indications of legal violations," Agung said during Thomas Cup and Uber Cup badminton simulation matches at the Senayan Indoor Stadium.

The findings followed the recent questioning of three executives of the SEA Games underwriting subcontractor, PT Angkasa Rona Graha by a team which included Agung himself.

Agung announced Monday that the three executives were held responsible for Rp 1.185 billion in revenues from sticker sales which were not transferred to the SEA Games consortium.

He refused to identify the executives, saying it was the job of the police.

"I'm not in the capacity to disclose who the suspects are. Besides, I'm afraid the case will develop and the police will find more people involved in the alleged scam."

He said a follow-up inquiry conducted by the accountant linked the irregularities with three state institutions involved in the sale of stickers. He refused to provide further details.

According to a decree issued by the minister of social services in 1996, stickers were charged for telephone users, including mobile phone subscribers, electricity and water consumers, air travelers and motorists extending terms of their driving licenses.

Chairman of the National Sports Council Wismoyo Arismunandar supported Agung's decision.

"If this is deemed the best move to solve the case, I'm fully in support of it. But we must have the presumption of innocence (of the three executives)," he said during the badminton games.

Wismoyo chaired the Games organizing committee.

The suspected graft has contributed to the consortium's deficit of Rp 64 billion, according to reports from public accountant KPMG Hanadi Sudjendro & Co. which audited the consortium.

The consortium, chaired by President Soeharto's son Bambang Trihatmodjo, spent Rp 156 billion for the Games, well above the initial estimate of Rp 75 billion.

Sticker sales to raise funds for the Games gave the consortium a total of Rp 43.22 billion, more than half of the consortium's revenues. (emf/amd)