Damaging Deloitte report likely to hurt BCCI more
The BCCI-appointed audit firm Deloitte has found widespread financial irregularities in the accounts of many state units, the amicus curiae has told the Supreme CourtUpdated: Jan 31, 2017 00:12 IST
On a day when the Supreme Court handed over the cricket Board’s administration to a four-member committee,amicus curiae Gopal Subramaniam informed that leading audit firm Deloitte’s reports on the state associations’ accounts have highlighted massive corruption.
“Deloitte has conducted thorough audit on the accounts of the state associations,” he told the court. “Deloitte auditors have found large-scale financial irregularities. Justice Lodha committee has this report.”
The Board of Control for Cricket in India (BCCI) had hired Deloitte under its ‘project transformation’ in November 2015.
HT has learnt that the auditors of Deloitte were surprised by the manner in which some units maintain their accounts. Deloitte had sent a detailed questionnaire to all state associations, but their replies tell a story. Some even provided hand written account details to Deloitte’s experts.
“(There are) About 4,800 pages of Deloitte’s reports on state associations; it’s shocking,” a senior lawyer who went through the report told HT on Monday.
Since the 2013 IPL spot-fixing scandal, the BCCI has been under pressure to closely monitor the money it disburses to state units. The Board now releases grants only after state units submit audited annual returns.
STATES UNDER FIRE
Some state units face corruption charges with various agencies probing fraud involving millions of rupees, but so far the BCCI has not taken steps to get FIRs registered.
However, cases have been registered against some Jammu and Kashmir association officials under sections 120B (criminal conspiracy), 406 and 409 (criminal breach of trust) over a financial case.
“… A huge amount like Rs 572 crore was distributed (in 2015). Next year, it may be over Rs 1000 crore. Should your system of disbursement not be perfect?” former CJI TS Thakur had asked during a hearing on the 2013 IPL spot fixing scandal case.
The Lodha Committee has suggested structural reforms in BCCI to usher in transparency. The Board made a key amendment to its bylaw in November on the financial accountability of state units.
In October 2016, the Lodha panel had directed the BCCI to furnish Deloitte’s reports. And the reports could damage BCCI’s reputation further.
First Published: Jan 31, 2017 00:00 IST