Now CGF comes under scanner
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Last Updated: Wednesday, August 18, 2010, 00:03
New Delhi: Already engulfed in a spate a of corruption scandals, the Commonwealth Games was on Tuesday rocked by a fresh scam with reports that one of the members of the CGF's coordination commission had ownership links with two companies which were awarded contracts.

According to a news channel, Craig McLatchey, a member of the Commonwealth Games Federation's coordination commission till 2009, had stakes in Sports Marketing and Management (SMAM) and Event Knowledge Services (EKS).

While the contract with SMAM worth close to Rs 230 crore was scrapped by the organising committee a few days back in the wake of the corruption charges, EKS has still a deal worth Rs 29 crore.

The SMAM's deal was scrapped after corruption allegations emerged but the Australian-based company was quick to rubbish reports saying the OC has "wrongfully, viciously, terminated agreement" and the grounds for termination are imaginary and concocted.

EKS was roped in to provide consultancy on the October 3-14 mega-event.

The TV report, quoting documents, said that the OC did not follow proper procedure in choosing Consortium of EKS and Ernst and Young as consultant. There was insufficient competition for selection of consultant with no comparable financial bid, the report said.

The interim report by the Comptroller and Auditor General (CAG) described it as an undue favour by OC in awarding contract to EKS.

However, CGF CEO Mike Hopper said there was no wrong doing in awarding the contract and due process had been followed.

"I don't see what the issue is as Mr McLatchey's conflict of interest was declared earlier to all the parties. Appropriate process was followed and there is nothing to worry," Hooper said.

The organising committee's deal with AM Films during the Queen's Baton Relay in London had opened a can of worms, putting Kalmadi in the eye of a storm with allegations of financial irregularities levelled on him and his colleagues.

Skeletons kept tumbling out of the cupboard before Prime Minister Manmohan Singh stepped in and empowered a Group of Ministers and Committee of Secretaries, headed by Cabinet Secretary, to supervise preparations for the October event.


First Published: Wednesday, August 18, 2010, 00:03

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