Govt muzzled CAG alarm on C’wealth Games delay

Date: 01 Aug 2010

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Govt muzzled CAG alarm on C’wealth Games delay //////////// From the following News clippings: with reference to Commonwealth Games: it suggesting that India is governed by a system of lawlessness, in which nobody accountable to masters of democracy, i. e. citizenry. Organisers are just not playing with the reputation of country, but also playing with the sentiments of the People.///////////// xxxxxxxxxxxxxx Govt muzzled CAG alarm on C’wealth Games delay////////// Pradeep Thakur, TNN, Aug 1, 2010, 01.32am IST //////////// NEW DELHI: The Comptroller and Auditor General (CAG) had submitted a report to the central and Delhi governments a year ago warning that preparations for the Commonwealth Games were way off target, but the governments strangely decided not to place it in Parliament as is the custom with CAG reports. ///////////// A copy each of the report was given to the PMO, the Delhi chief minister and the Lieutenant Governor, as well as Organizing Committee (OC) chairman Suresh Kalmadi. This was meant to apprise them of bottlenecks and failures well in time for a course correction. //////////// The damning report was given to the government in July 2009. It noted how it took two years after the project was awarded to India for the OC to submit its budget for the Games to the government (in November 2005). Another 17 months passed (April 2007) before the budget was approved by the Centre. ///////////// The plan was finalised as late as August 2007, the project and risk management experts were appointed only in March 2008 and the Games masterplan finalized as late as November 2008. That’s when the masterplan was sent for Commonwealth Games Federation approval. In other words, five years were spent on no more than mere paperwork. /////////// The CAG observations made it clear the government needed urgently to intervene and take control because the OC had a lacklustre approach and was, in some cases, an impediment. The report cited how the project executing agency, CPWD, had blamed the OC and its consultants for delaying projects by constantly revising designs for every venue. ///////////// The report said that till it was compiled, ie July 2009, the OC was still considering the final drawings for venues such as the Nehru Stadium. The report noted that of the 34 functional areas in the Games projects, as of May 2009, draft operational plans had been prepared for just 16. And these plans were yet to get approvals from the CGF. Delayed preparation of the planning documents risks impacting timely, safe and effective execution, the report had warned various agencies. //////////// Kalmadi denies CWG 'corruption' allegations//////////// PTI, Jul 31, 2010, 08.30pm IST//////////// NEW DELHI: Under fire over allegations of financial irregularities, Commonwealth Games Organising Committee Chairman Suresh Kalmadi today admitted that there was no contract under which payments were made to a British company which was roped in "at the last minute". //////////// Kalmadi, who convened a press conference to clear the air, said the Indian High Commission had recommended the name of A M Films, a little known British company, and "if there is something wrong there, I am not responsible for it". /////////////// "There is no contract between the OC and A M Films which was roped in at the last minute only on the recommendation of the Indian High Commission in London", he said. ///////////// The OC is reported to have made a payment of nearly 2.5 lakh pounds for video equipment purchase while A M Films has claimed that it provided services of car hire, makeshift toilets, barriers and electricity. /////////// The press interaction came a day after a major scam hit the Commonwealth Games with reports that A M Films was given over 4.50 lakh pounds without following any proper tendering procedure and there was no paper work. //////////// Kalmadi claimed that "every pie is accounted for" and threatened to initiate legal action against those who have maligned the OC's image with "totally unfounded and baseless" allegations. ///////////// Washing his hands off charges of irregularities in awarding contracts for construction of stadiums which figure in the Central Vigilance Commission's report, he said OC was not in the picture. //////////// Even as Kalmadi claimed there was "total transparency" in all the deals, Sports Minister M S Gill sent out a stern warning, saying "prompt and appropriate" action will be taken if any irregularities related to the mega event in October were brought to the Ministry's notice. /////////// Noting that he was closely following media reports alleging irregularities, he said "if anything comes to our notice which needs to be dealt with, then the officers must make sure that they deal with it promptly and appropriately". //////////// Kalmadi sought to explain the last minute engagement of A M Films, saying the London authorities at a meeting on october 23 last year had said additional items like mobile video screens, portable toilets, ambulances, barricades etc had to be put in place for the Queen's Baton Relay on October 29. //////////// "AM Cars and Vans - a company empanelled by the High Commission of India in London - was appointed for all the transportation requirement on the rates approved by the High Commission. Since AM Films was a sister company of AM Cars and Vans we went for it and that also on the rates recommended by the High Commission," he said waving a letter purportedly issued by the High Commission on October 13, 2009. ////////////// He said the money to AM Films Ltd was paid through bank transfer from Delhi with due approvals. The other items like mobile toilets, barricades etc were got through AM Cars and Vans, he said. //////////// Asked about BJP's demand for a judicial inquiry into the scam, Kalmadi said, "I am okay with any judicial inquiry. It's government's call. I have not received any letter from any authority from India or England on the issue. ///////////// /////// Indian High Commission refutes Kalmadi's claim/////////// PTI, Jul 31, 2010, 09.59pm IST//////// NEW DELHI/LONDON: In a new twist to the major scam in the Commonwealth Games, Organising Committee chairman Suresh Kalmadi on Saturday said the British company to which large sums were paid had been recommended by the Indian High Commission which refuted the claim in London. ////////////// Kalmadi, who convened a press conference in Delhi to clear the air, said the Indian High Commission had recommended the name of AM Films, a little known British company, and "if there is something wrong there, I am not responsible for it".//////////// Reacting to remarks made by Kalmadi, India's Deputy High Commissioner in London said that "the High Commission has not made any (such) recommendation". /////////// Dwelling on the issue, High Commission spokesman said, "AM Films is not on the panel of companies recommended by the High Commission usually". /////////// The spokesman said, "we have to scrutinise the email Kalmadi is holding as proof of the High Commission's recommendation". ////////// Kalmadi had shown a communication purportedly sent by Raju Sebastian, an assistant in the Indian mission, recommending the name of the British company. High Commission sources said Sebastian was too junior a staffer to have been entrusted with this task. ////////////// AM Films was reportedly given over 4.50 lakh pounds by the OC without following any proper tendering procedure and there was no paper work. Kalmadi has rubbished allegations of wrongdoings. /////////////// Kalmadi, who has been under fire over allegations of financial irregularities, however, admitted that there was no contract under which payments were made to AM Films, saying it was roped in "at the last minute". //////////// "There is no contract between the OC and AM Films which was roped in at the last minute only on the recommendation of the Indian High Commission in London", he said. ////////// The OC is reported to have made a payment of nearly 2.5 lakh pounds for video equipment purchase while AM Films has claimed that it provided services of car hire, makeshift toilets, barriers and electricity. ////////// The press interaction came a day after a major scam hit the Commonwealth Games with reports that AM Films was given over 4.50 lakh pounds without following any proper tendering procedure and there was no paper work. /////////// Kalmadi claimed that "every pie is accounted for" and threatened to initiate legal action against those who have maligned the OC's image with "totally unfounded and baseless" allegations. //////// Washing his hands off charges of irregularities in awarding contracts for construction of stadiums which figure in the Central Vigilance Commission's report, he said OC was not in the picture. ////////////////// Even as Kalmadi claimed there was "total transparency" in all the deals, Sports Minister MS Gill sent out a stern warning, saying "prompt and appropriate" action will be taken if any irregularities related to the mega event in October were brought to the Ministry's notice. //////// Noting that he was closely following media reports alleging irregularities, he said "if anything comes to our notice which needs to be dealt with, then the officers must make sure that they deal with it promptly and appropriately". ///////////// Didn't have contract with CWG organizers: UK-based company//////// PTI, Jul 31, 2010, 04.46pm IST/////////// NEW DELHI: The UK-based company at the centre of a corruption row which has rocked the upcoming Delhi Commonwealth Games today admitted that it did not have a contract with the event's organizers but denied allegations of irregular financial transactions with them. //////// A M Films, the firm which has received lakhs of pounds for extending its "services" for the Queen's Baton Relay's London leg, however, denied allegations that the deal with the CWG Organizing Committee was questionable. /////////// "No illegal or irregular financial transactions have taken place between AM Films and the Commonwealth Games organizing committee," the company's owner Ashish Patel said. /////////// "The money was transferred in lieu of services obtained during the Queen's Baton Relay function in London in October last year and we have all the details of the deal which I can produce if needed," he added. ////////// Asked whether the company had a contract to show, Patel said, "No, we didn't have the contract in place at that time. Everything was happening so fast so we couldn't get the contract then. Now the revenue wants to know where is the contract." /////////// "I'm waiting for his lawyers. He is away and will return on August 9. I will take a decision after speaking with him. If needed I can even come down to India," he told a TV channel. ///////// The entire deal came to light when the OC asked for a VAT refund of 14,000 pounds in March this year for the payments made to the British company. //////// Allegations of a substantial sum of money being transferred to AM Films from the Games Organizing Committee (OC) emerged yesterday with the British Government also raising doubts about the deal. ////// Reports claimed that over 4.50 lakh pounds were transferred through a British bank to A M Films, which was also receiving 25,000 pounds a month. //////// However, Patel denied all such reports and said he has so far received 2,47,000 pounds from the OC. Patel claimed that the OC still owes his company 1,23,000 pounds. ///////// "No money has come to my account without paper work and I can show you. Whatever money has come we have invoices against that. No money came into my account apart from the 2,47,000 pounds. //////// "There is no transaction which came for 25,000 pounds. I have given all invoices to the OC, against which they paid me. One invoice of 1,23,000 is still outstanding, which we have sent but they have not sorted out the payment as yet," he said. /////// Reports quoted a letter of the British Revenue and Customs Department to the Indian High Commission stating that there was no written contract between the CWG and AM Films and that no tendering procedure was followed. //////////// The OC is reported to have made a payment of nearly 2.5 lakh pounds for video equipment purchased while A M Films has claimed that it provided services of car hire, makeshift toilets, barriers and electricity. ////////// Indian High Commission sources said the information provided by the UK authorities had been forwarded to the Sports Ministry for follow up action. ////////// In Delhi, Cabinet Secretary K M Chandrashekhar conveyed concern over the charges as well as delay in preparations to the Organising Committee of the sporting event in October this year. //////////// BCCI refuses to give 100 crore donation to CWG//////// PTI, Jul 31, 2010, 02.23pm IST///////// MUMBAI: Grappling with allegations of widescale corruption, the Commonwealth Games suffered another blow on Saturday with the BCCI refusing to give a Rs 100 crore donation sought by the oraganising committee. ///////// After a meeting of its working committee at the Cricket Centre, the BCCI said it would not be able to extend financial help to the October 3 to 14 event, the build-up to which has been marred by construction delays and now allegations of money laundering. "The committee expressed its inability to agree to the request of the Commonwealth Games to be the lead partner by donating Rs 100 crores," BCCI secretary N Srinivasan said in a statement. /////////// Besides this, the board also agreed to support New Zealand Cricket chairman Alan Isaac's candidature for the ICC vice-president's post. /////////// Isaac was picked after former Australian Prime Minister John Howard's candidacy was rejected by the Afro-Asian bloc. /////// "The Committee approved the candidature of Mr Alan Isaac, chairman, New Zealand Cricket, for the post of ICC Vice-President," the board statement said. ///////// Among other issues, the BCCI said the stand-off over the contentious whereabouts clause of the World Anti-Doping Agency has been resolved. ///////// The Indian board has roped in hockey legend Vece Paes as an anti-doping officer. /////////// "The committee noted the satisfactory resolution to the WADA Anti-Doping issue, with the ICC. The committee approved the proposal to seek the services of Dr Vece Paes, former Olympian, as anti-doping officer. The modalities are being worked out," the BCCI said. //////// The board also decided against giving the remaining Rs 12.5 crore of a Rs 25 crore grant requested by the All India Football Federation. //////////// "The money we have already given is given but we can't pay the remainder because we no longer get concessions from the Income Tax Department," a board official said on the sidelines. ////////// The TV rights of the upcoming events were also discussed in the meeting. /////////// "Negotiations are on with Nimbus. The World Sports Group bid was not even opened," the official revealed. ///////////// The board also approved advance grants of Rs 20 crore and Rs 25 crore respectively to the Mumbai Cricket Association and the Tamil Nadu Cricket Association for renovation of stadiums. //////////// OC not crashing by BCCI's refusal: Kalmadi//////// PTI, Jul 31, 2010, 08.41pm IST///////////// NEW DELHI: CWG Organising Committee chairman Suresh Kalmadi today brushed aside BCCI's refusal of a 100 crore donation towards hosting of the Games, saying the OC would not crash following Cricket Board's snub. ////////// The Indian Cricket Board today rejected OC's request at its Working Committee meeting in Mumbai. ////////// "OC is not going to crash by BCCI's refusal," he retorted when asked about the Cricket Board deciding against the donation on a request by the OC. //////// Kalmadi said he thought the BCCI would be interested in supporting Olympic sports since cricket was a "prime sport" in the country. ////////// "Cricket is prime sport in the country. I thought BCCI would want to support Olympic sport and so I wrote a letter to them. It was one of 100 letters written to different bodies and agencies. Ours is a revenue neutral Games. So we have to see the commercial aspect also," he explained when asked why he wrote the letter to BCCI at the first instance. /////// Kalmadi expressed happiness that the OC would be able to pay back the money borrowed from other sources, including the government, as they are expecting more revenue than targetted. /////////// "We have to pay back all the money we borrowed. We have taken Rs 900 crore so far from the government and we have now collected Rs 700 crore and more are coming in the next two months," he said. /////////// "Our sources of income are from sponsorship, TV rights sale, merchandise, ticketing and some donation. We are getting $50 million from TV rights, exceeding the targetted $30 million," he explained. ///////// "A Canadian company will telecast the Games live for the first time in their country. For the first time, United States has also shown interest in the Games and so we have also got some money from the broadcasters. Nearly three billion people will watch the Games," said Kalmadi. //////////// Congress wants irregularities related to CWG probed///////// PTI, Jul 31, 2010, 06.32pm IST///////// NEW DELHI: With controversies dogging Commonwealth Games, a "worried" Congress on Saturday said any irregularity should be probed into and the organisers as well as others involved should ensure that the country's prestige does not suffer. ///////// "We are definitely worried a little with it (reports of delays and irregularities).... The irregularities that have happened should be probed and those guilty punished," party spokesperson Shakeel Ahmed said. ///////// He added that the party's "concern is that the Commonwealth Ganes were happening in the country for the first time. Representatives of a number of countries, players, mediapersons will come. If there is any lacunae or irregularity in the Games, it will not be good for the country's image." /////// The spokesperson said that those who are engaged in organizing the Games and others should take care that "the country's prestige does not suffer". ///// Allegations of a substantial sum of money being transferred to AM Films by Games Organising Committee (OC) for its "services" for the Queen's Baton Relay's London leg emerged on Sunday with the British Government also raising doubts about the deal. ///////// The company, however, on Saturday denied allegations that the deal with the CWG Organising Committee was questionable. ////////// Cabinet Secretary KM Chandrashekhar held a review meeting yesterday which was attended by officials of concerned agencies, including CWG Organising Committee, Youth and Sports Ministry, Urban Development Ministry and Tourism Ministry/////// -- My Logo TRUTH SHALL ALWAYS PREVAIL //////// 000000000