SEAG consortium refuses to repay reforestation funds

JAKARTA (JP): The 19th Southeast Asian Games underwriting consortium has refused to repay the reforestation funds it reportedly used for the sporting event.

The consortium's promotion and business deputy, Enggartiasto Lukita, said yesterday that the consortium had not known the source of the funds lent from the government for the games last year until secretary of the Ministry of Forestry and Plantations, Oetomo, unveiled it last week.

"We didn't know the loan was from the reforestation funds. We just knew that the money came from the minister/state secretary," Enggartiasto told a hearing with House of Representatives Commission VII on education, religion, sport and youth affairs yesterday.

Enggartiasto was accompanying State Minister of Youth Affairs and Sports Agung Laksono in the hearing.

Oetomo claimed over the weekend that the consortium owed the Ministry of Forestry and Plantations Rp 35 billion (US$2.5 million) from interest earned on the country's reforestation funds.

He said the order to channel the funds to the consortium to finance the Games came directly from the state secretary through a presidential decree.

Agung shrugged his shoulders yesterday, saying he had no idea about the matter.

"I can't give any comment because I haven't seen the presidential decree. I want to check the decree first. But, if it's true, I will urge the consortium to return the money soon because it's a part of the state budget," he said.

Enggartiasto said the funds had been spent to cover the training program for national athletes participating in the event.

He said the consortium had never planned to default on its debts.

"We also borrowed Rp 23 billion from banks with 80 percent interest thanks to the National Sports Council's help. We want to return the money soon but unfortunately we don't have the ability to do so," he said.

The consortium, chaired by ex-president Soeharto's son Bambang Trihatmodjo, was Rp 61.725 billion in debt as of the end of May, down Rp 2.275 billion from its April report.

It raised Games funds by selling stickers to public utilities customers, airplane passengers and car owners renewing their driver's licenses or extending vehicle registration documents.

The consortium reportedly earned Rp 87.9 billion, but spent Rp 156 billion -- far above its projected Rp 75 billion budget.

Enggartiasto said the consortium had requested a debt write- off from the Gelora Senayan management board.

"We still owe them Rp 3.5 billion from the rental of the Senayan sports venues, but we've asked the board to write it off. We built a Rp 1 billion synthetic hockey field and handed over a Rp 2.5 billion sound system to the management," he said.

Meanwhile, House member Syafrie Hutauruk questioned the consortium's report on the City revenue agency's earnings, which it said amounted to a low Rp 13 million.

"It doesn't make sense if the agency only managed to pull in Rp 13 million while the state electricity company PLN raised Rp 2.8 billion. I want the commission's chairman to set up a special team to investigate this case," he said.

Enggartiasto said that some of the money collected by the agency was embezzled by five of the consortium's staff members, now being investigated by the police. Two of them were arrested in May, while the other three are still at large. (yan)