Kalmadi cornered: CAG finds fault in CWG contract; Cong snubs him too
Under attack from various quarters, Suresh Kalmadi has come in for criticism from CAG while Congress is mulling a committee for CWG.
New Delhi: Already under attack from various quarters, the CWG Organising Committee has come in for criticism from government auditor CAG over appointment of two consultants for broadcast rights and sponsorship agreements and its chief was snubbed by the Congress party which is reported to be mulling a committee to oversee the Games.
The Executive Board of the Committee approved M/s. Fast
Track Sales Ltd as consultant for international broadcasting
rights only on the basis of suggestions made by President
(Michael Fennel), CEO (Mike Hooper) of the Commonwealth Games Federation and Chairman, OC (Suresh Kalmadi), an inspection report on the accounts of the OC said.
No detailed technical evaluation of bidders was carried
out before the appointment of M/s. Fast Track Sales Ltd, the
CGF chief executive Mike Hooper said: "I strongly refute any wrongdoing. It is for the Organising Committee (OC) to follow proper processes in accordance with Indian law. The OC has to decide who it will appoint in outsourced roles."
Sources in the Congress have revealed to the media that the party is actively considering the option of either having a political committee to oversee the Games work or ask the Centre to create an official body to carry out the function.
Brushing off any responsibility over the corruption in the Commonwealth Games, the Congress party said earlier today, “Kalmadi is not a representative of Congress on CWG panel. The OC must respond to CAG report,” adding that it has ‘nothing to do with the politics of sports’.
The remarks have come after party general secretary
Digvijay Singh also joined the chorus saying Kalmadi should
resign if found guilty.
There has been a projected loss of revenue of over Rs 24
crores on account of giving contract to Fast Track Sales Ltd
(Rs 5.20 crore on account of increased commission) and due to
deficiencies in the services of the consultant (Rs 19 crores).
However, the OC headed by Kalmadi and their
international bosses Fennel and Hooper today stoutly denied
any wrongdoing in awarding the contracts.
OC Secretary General Lalit Bhanot said it was a well
thought out decision to award the deal to Fast Track as they
did not want to give too many contracts to Sports Marketing
and Management, Australia, which already had bagged the
The CAG inspection report also alleged that undue favour
amounting to Rs 25 crore was shown in the appointment of
consultants SMAM and Leisure Sports Management, Kolkata.
"The OC did not follow the procedure laid down in the
manual and did not allow sufficient time to the consultants
who had responded to the Expression of Interest.
"This resulted in insufficient competition for selection
of consultant for marketing of sponsorship and commercial
rights. There was no comparable financial bid available with
OC for comparing the bid of SMAM," the report said.
It also faulted the OC on various grounds like avoidable
expenditure of Rs 4.11 crore on renovation of IOA Bhavan,
avoidable payment of rent and maintenance charges amounting to
Rs 1.44 crore and "arbitrary" engagement of advocates.