‘OC inconsistencies cost Rs 382-cr loss’

The high-level committee, headed by former Comptroller and Auditor General VK Shunglu to probe into irregularities in conducting the Commonwealth Games, has come down heavily on the mismanagement in the CWG Organising Committee (OC).

The high-level committee, headed by former Comptroller and Auditor General VK Shunglu to probe into irregularities in conducting the Commonwealth Games, has come down heavily on the mismanagement in the CWG Organising Committee (OC).

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The panel said the irregularities and adverse conduct that appeared to have permeated a large part of the OC affected the smooth preparation and build- up of Games and its image.

The Shunglu panel, which put up its report online on Thursday has in its 514-page report also made adverse views on former OC chairman Suresh Kalmadi and held him responsible for “taking steps that were detrimental to the OC’s operations.”

According to the panel’s report, the irregularities include failure to conduct price negotiations, failure of governance and oversight, dysfunctional mismanagement and unwarranted delays in awarding contracts among others.

The panel pegs the potential financial impact of inconsistencies and adverse contracting as identified for contracts reviewed at Rs 382 crore.

“This climate encouraged misconduct, misdemeanour and in cases, possible personal profiteering by OC functionaries, caused losses, led to missed revenue opportunities and generated unnecessary expenditure.”

The committee also found irregularities and revenue losses in executing contracts related to ticketing, sponsorship, overlays, timing, scoring and results, catering and recruitment.

The panel has also come down heavily on the existence of a “coterie” which appeared to have resulted in a situation where “unethical and non-transparent behaviour was tolerated and promoted.”

“People with questionable background such as Nachiketa Kapur, who the Appointment Committee of the Cabinet (ACC) opined should not be given any sensitive post were given appointment by the OC. Other examples such as VK Verma (DG) and RP Gupta (ADG- Venue Operations) against whom vigilance inquiries at previous government positions were being conducted, TS Darbari against whom complaints were received while he was working in OC were also recruited disregarding the red flags,” the high-level committee report stated.

The panel has also found evidence of criminal misconduct and managerial lapses on part of higher functionaries, including chairman of New Delhi Municipal Council, Director General of Central Public Works Departments, senior officials of Delhi Development Authority and Engineers India Limited.

“The responsibility for the irregularities that have been noticed, which range from administrative misdemeanours to criminal misconduct, will have to be borne by the senior officers of the concerned agencies. The malaise runs deep and
cannot be dismissed as a one-off aberration for which relatively junior functionaries alone can be held responsible,” the report added.