Commonwealth Games OC justifies deal with Fast Track
Stung by the CAG's interim report which has found discrepancies in some deals, the CWG Organising Committee today defended its broadcasting rights deal with Fast Track despite a high commission paid to them, saying the UK company had doubled the revenue target.delhi Updated: Aug 12, 2010 13:33 IST
Stung by the CAG's interim report which has found discrepancies in some deals, the CWG Organising Committee today defended its broadcasting rights deal with Fast Track despite a high commission paid to them, saying the UK company had doubled the revenue target.
The Comptroller and Auditor General of India (CAG) in its interim inspection report has pointed out that Fast Track was preferred over Sports Marketing and Management (SMAM) despite a high comission and thus OC lost on revenue generation.
SMAM had offered its services for 12.5 percent while OC gave 15 percent to Fast Track.
OC Secretary General Lalit Bhanot said it was a well thought out decision to award the deal to Fast Track as they did not want to give too many contracts to SMAM, which already had bagged the sponsorship contract.
"Fast Track is a well known company in this field and we have to ensure that company which has the experience is given the job. They had done it in Melbourne and other Commonwealth Games. It was a very wise (decision) that we did not put all the eggs in one basket," Bhanot said.
"Fast Track has almost doubled the revenue we targetted. I think it's fully justified and a proper procedure was followed and it was a decision taken by the Board that not to give both the contract to one firm despite the fact that they were charging less.
"But now the end result is that we have achieved double the target... we have earned more," he said.
The OC had recently scrapped its sponsorship deal with SMSM on grounds of 'non-performance', a claim that has been refuted by the Australian firm, which said the charges against it are "imaginary".
The CAG report, it is learnt, has also alleged that high profile officials such CWG chief Mike Fennel and CEO Mike Hoper were involved in various discrepancies.
Hooper refused to comment on the developement.
"I have not seen the CAG report myself. I have seen only media reports. I will ask OC to get us a copy of the CAG report. Will comment only after seeing it," Hooper said.
First Published: Aug 12, 2010 13:12 IST