YLKI backs House team's inquiry

YLKI backs House team's inquiry

JAKARTA (JP): The Indonesian Consumers Foundation (YLKI) is
backing the House of Representatives' initiative to set up a
fact-finding team to investigate the debt of the 1997 Southeast
Asian (SEA) Games underwriting consortium.

A member of YLKI's executive board, Tini Hadad, said on
Wednesday the agency would help the House by providing data and
suggestions.

"We will assist the House but not as a member of the fact-
finding team. If the House sets up its team, it's better if the
members come from the House itself," she said.

"The House has the authority to seek information on the case
from the public. It can call high-ranking officials to
investigate the case. House members should not be afraid of the
'Cendana cronies'," she added, an apparent reference to former
president Soeharto and his family, whose Jakarta compound is on
Jl. Cendana.

The consortium, which was chaired by Bambang Trihatmodjo, one
of Soeharto's sons, was assigned to raise funds to finance the
biennial event. Its assignment was supported by a ministerial
decree dated July 1, 1996.

The consortium originally approved the provision of Rp 70
billion (US$9.4 million) for the event, but the monetary crisis,
which first struck in mid 1997, caused expenditures to skyrocket
to Rp 156 billion.

It reportedly also owes Rp 35 billion in funds diverted from
the government's reforestation fund -- which is now equivalent to
Rp 44 billion with interest -- along with Rp 8.7 billion to
suppliers, Rp 2.7 billion to the National Sports Council (KONI)
and Rp 1 billion to Hotel Atlet Century Park and the Gelora
Senayan Management Board respectively.

Tini criticized the financial audit of the consortium, which
was conducted by public accountant KPMG Hanadi Soedjendro & Co.
in 1998. It found the consortium suffered losses of Rp 64.166
billion.

"The consortium cannot just claim that it's bankrupt. It must
have its assets audited and the court will declare if it really
is bankrupt," she said.

"The audit report only specified the cash flow but not the
whole report, including where and how the money came from, what
it was used for and other matters."

Stickers

Tini said the consortium was wrong to try to raise funds
through the mandatory purchase of stickers by users of telephone
and cellular phones, electricity, air transportation and for
motorists extending their driver's licenses. The consortium
action was backed with a decree issued by the social services
minister in 1996.

"We warned them of the possibility of embezzlement during the
fund raising as the consortium had no power to observe the
sticker sales nationwide."

She also lambasted KONI chairman Wismoyo Arismunandar, saying
that Wismoyo always urged businesspeople to donate to the staging
of the sports event for "the sake of the country and nation".

"This is a form of psychological abuse of businesspeople who
would have felt intimidated into contributing money to stage the
event," she said.

"This collusion system usually ends up with benefits from the
government to companies which become the events donors."

Tini said Wismoyo continually sought to play down the
consortium's debt by saying it had enable the country to host the
Games.

"Pak Wismoyo always backs and thanks the consortium as if it
really did us all a great favor. But what does it mean if the
consortium's contribution only brought more debts."

Tini also said that the public could sue the state secretary
or the Ministry of Forestry and Plantations under the
environmental management law issued in 1997.

"The public can file a lawsuit, saying that the reforestation
funds were misused and it made the ministry unable to conduct its
reforestation fund programs, which could lead to environmental
damage in areas like Kalimantan or Sumatra." (yan)