CWG scam: Mauritius-based firm under CBI scanner

CBI is likely to investigate the role of a Mauritius-based company for alleged irregularities in executing over Rs 70 crore contracts for providing consultancy for CWG works after receiving a reference from Sports Ministry.

New Delhi: CBI is likely to investigate the
role of a Mauritius-based company for alleged irregularities
in executing over Rs 70 crore contracts for providing
consultancy for Commonwealth Games-related works after
receiving a reference from Sports Ministry in this regard.

Acting on PMO recommendation, the Sports Ministry has
sent a letter to CBI to probe the antecedents, flow of funds
and works carried out by Event Knowledge Services (EKS), an
international private consultant, for alleged wrongdoings.
EKS was given three contracts of over Rs 70 crore by the
Games Organising Committee to extend consultancy services for
the venue development and management, games workforce, and
games planning and project management services.

"A reference has been received from the Sports Ministry
and a preliminary enquiry into the matter is on," a CBI
official said.

Taking a serious view of the Shunglu Committee`s
findings, the PMO had suggested to Sports Ministry a probe by
CBI and Enforcement Directorate.

It has directed "expeditious action" on Prime Minister
Manmohan Singh`s order in the matter and sought the reply of
Sports Ministry within a month on the fifth report of the
high-level committee appointed by him.
"We will also be sending a reference to ED to probe
alleged violation of foreign exchange acts and money
laundering," a Sports Ministry official said.

The Committee in its report estimated financial loss of
over Rs 18 crore to the Government due to alleged
irregularities in granting workforce contract.

The Prime Minister had on October 25 last year appointed
the high level committee under the chairmanship of former
Comptroller and Auditor General V K Shunglu to investigate and
report all irregularities in executing various projects by
several government agencies during the Games held here between
October 3-14 last year.

The committee, in its report submitted to the PMO on
March 28, found several discrepancies in the projects executed
by the company and "collusion" among sacked jailed OC Chief
Suresh Kalmadi, Chief Executive Officer of CWG Federation Mike
Hooper and other senior functionaries of the Games body.

Interestingly, the Games Planning and Project Management
Contract permitted EKS to assign the same to a sister concern.
EKS incorporated a new company in November, 2008 in Mauritius
by the name Event Knowledge Services Pvt Ltd.

The entire contract was assigned to the new company in
June 2009, thus, making a mockery of Quality Based Selection
System (QBS), the report said.

"This is a fit case for reference to the CBI and the ED.
They would have to investigate the ownership of EKS Private
Limited, Mauritius and trace the flow of funds from the OC to
EKS private limited and onwards to other recipients.

"The aspects of fraud involved in this case would also
need to be investigated and suitable criminal action taken
against the guilty," it said.

The committee has scrutinised projects like sponsorship,
ticketing, overlays, ceremonies, technology contracts and
catering among others executed by the OC.

Besides Kalmadi,former OC Secretary General Lalit Bhanot,
Director General V K Verma, Deputy Director General
-Procurement Surjeet Lal and Joint Director General-Sports A S
V Prasad among others are in Tihar jail for their alleged
involvement in the CWG scam.


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