SEAG consortium in new financial pickle
JAKARTA (JP): The deficit-stricken 19th Southeast Asian Games underwriting consortium is reeling from another financial blow after the government slapped it with a Rp 200 million (US$15,270) bill for unpaid import taxes on purchases of sports equipment.
The consortium's secretary for procurement of sports equipment, Marto Bardosono, told reporters yesterday that the director general of customs and excise, Bambang Martiono, had asked the consortium to pay up despite an earlier decision by his predecessor to exempt it from paying import duties.
"We are not questioning the amount of money but the consistency of government policy," Marto said.
He said Bambang's predecessor, Soehardjo, approved tax exemptions for the consortium's import of goods and sports equipment to be used for the Games following ministerial decrees issued by then finance minister Mar'ie Muhammad.
Marto said Mar'ie signed decree number 2473/KM.5/1997, dated Aug. 22, 1997 and another numbered 385/KM.5/1998 and dated Feb. 25, 1998, which exempted the consortium from paying import duties, value-added tax, sales tax on luxurious goods and income tax because it imported the goods for a nonprofit orientation.
The consortium -- chaired by Bambang Trihatmodjo, son of former president Soeharto -- has reported a Rp 68.1 billion deficit from the event, held from Oct. 10 to Oct. 19 last year. It also owes Rp 1 billion to the Senayan Management Board on the rental of sports venues during the competition.
Marto said the imports had cost the consortium more than $606,000. Equipment imported included items for canoeing and rowing, taekwondo, swimming, hockey, windsurfing and yachting, water skiing, gymnastics, doping and gender tests and security.
The sports equipment has been handed over to the National Sports Council and will be used in the 2000 National Games in Surabaya, Marto said.
He refused to comment on luxurious cars which reportedly were also bought by the consortium without taxes. "It's beyond my authority (to comment)," he said.
A sports council official, Eman Sumusi, seconded Marto's query of the bill.
"We know about new regulations issued by the directorate general last February. But it's ridiculous if they apply to us, because we imported the equipment not for sale."
Marto said the consortium and the sports council planned to write Minister of Finance Bambang Subianto to ask for clarification.
Separately, the council's chairman Wismoyo Arismunandar, who also headed the SEA Games Organizing Committee, said he would apply a personal approach to reach a settlement of the dispute.
"Martiono was my friend during our youth in Semarang (Central Java)," Wismoyo smiled. (yan)