Aus firms vow to pursue non-payment of dues by CWG OC: Report

Australian firms, whose dues were withheld by the CWG OC due to "under performance and contractual obligations", have vowed that they would pursue the matter by means including legal.

Updated: Feb 02, 2011, 23:26 PM IST

Melbourne: Australian firms, whose dues were withheld by the Commonwealth Games Organising Committee due to "under performance and contractual obligations", have vowed that they would pursue the matter by means including legal.

The companies rebutted the CWG OC chief executive Jarnail Singh`s claim yesterday that the payments were not made due to under performance and said that they have exceeded their contractual obligations.

The Australian firms Spectak Production run by Ric Birch, who reportedly threatened a multi-million dollar law suit against the CWG OC, the Swiss-based EKS, owned by an Australian Craig McLatchey, and Greg Bowman`s Great Big Events are among those which have not been paid in full, the `Sydney Morning Herald` reported.

Birch said he would pursue full payment and that the matter was in the hands of his lawyers.
"At no time during the term of the contract did (Games organisers) mention any dissatisfaction and waited two months after the Games, and two months after final payment was due, to announce that Spectak was `not up to the mark`," he was quoted as saying by the newspaper.

"The response is ridiculous, but then so many of their decisions were," he said.

McLatchey said his firm EKS had fulfilled its contractual obligations.

"EKS consistently outperformed the scope of work required and the quality of the work was widely acknowledged within the organising committee and other entities. The organizing committee continues to act in a manner which is without precedent and brings tremendous discredit to India," he said.
Greg Bowman, chief executive of Great Big Events, which handled the sporting events, said, "They were extremely delighted with the result, we went way over and above the contract. And we had good relations with the people we worked with, that`s why this is so disappointing."

The newspaper said the CWG organisers are refusing to pay 178 million rupees (USD 3.85 million).

EKS, which provided project management and workforce training, is owed more than USD 500,000 while Great Big Events has not been paid USD 100,000, according to the report.

The newspaper quoted Jarnail as saying that a committee had decided how much of each contract should be paid out, based on the amount of work done.

"Some contracts were not delivered upon during the Games. We formed a committee for this which looked at the details of the contracts, what was to be delivered under that contract and what was actually delivered.”

"Based on reports prepared by people organising and running the Games, the committee has reached the position that for these companies some payment should be withheld," he said.

"We are being very open with our dealings, very transparent. We have written to those companies explaining our decision. They can respond to us, let them tell us where we are wrong, why the contract was fulfilled. But we have examined our reports and it is the case that the contracts were not fulfilled."