Senayan directors agree to write off consortium debt
Senayan directors agree to write off consortium debt
JAKARTA (JP): Gelora Senayan sports complex's board of
directors has agreed to write off a Rp 1 billion debt owed by a
consortium assigned to manage the 19th Southeast Asian Games.
The consortium incurred the debt through preparing venues at
which to stage various competitions in the biennial event.
Director of the sports complex, Yasidi Hambali, said on Friday
that it was up to the State Secretariat whether or not to write
off the consortium's debt.
The minister/state secretary served ex officio as chairman of
the sports complex's management board.
"We will discuss our decision with the minister/state
secretary. If the consortium really used the money for staging
the Games, I think the government would also give approval to
write off the debts," Yasidi said, adding that he would ask the
National Sports Council (KONI) to explain the decision to the
government.
He, however, failed to mention when he would meet with Akbar
Tanjung, the current minister/state secretary, who is busy
preparing to campaign for his political party, Golkar. When
Indonesia held the Games in October 1997, the post of
minister/state secretary was held by Moerdiono.
Yasidi added that the consortium, however, must settle its Rp
1.1 billion debt with Century Park Athlete Hotel, which is also
owned by the sports complex's management board.
"We will not write off the consortium's debt to Century Park
because the money was used to pay third parties who gave services
to the athletes, like cleaning or catering services. So the
sports complex's management board would really suffer a huge
financial loss if the consortium failed to settle its debts," he
said.
The consortium, chaired by one of former president Soeharto's
sons, Bambang Trihatmodjo, was responsible for raising funds to
finance the Games. It begged to have its debts to the board
waived last May, pleading financial constraints.
In its audit report, the consortium declared a Rp 68 billion
deficit. The financial losses excluded Rp 46 billion in debts the
consortium owes to the Senayan management board, the Jatiluhur
reservoir authorities and hotels which accommodated participating
athletes during the event as well as the Ministry of Forestry.
The consortium's executive director, Bambang Riyadi Soegama,
told State Minister of Youth Affairs and Sports Agung Laksono,
who is also a vice chairman of the sports complex's management
board, last September that the consortium had not embezzled the
money. Soegama also said the consortium would approve of a legal
settlement if it failed to pay off its debts.
Yasidi also said the board officials faced difficulties in
meeting with the consortium's members.
"We don't know with whom we should meet to discuss the matter.
If we want to take the matter to court, we don't who we should
sue," he said. (ivy)