Now CGF comes under scanner
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
EKS was roped in to provide consultancy on the October
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
"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.
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