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One firm, 2 deals and a Rs 5.8 cr loss

Glaring instances of how the Commonwealth Games Organizing Committee (OC) flouted all norms while signing games contracts has astounded the various investigating agencies probing the scam tainted organization. Moushumi Das Gupta reports.

Updated on: Jan 29, 2011 12:07 AM IST
Hindustan Times | By , New Delhi
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Glaring instances of how the Commonwealth Games Organizing Committee (OC) flouted all norms while signing games contracts has astounded the various investigating agencies probing the scam tainted organization.

HT Image
HT Image

The Comptroller and Auditor General (CAG), in its ongoing investigation of OC’s account have come across another example of the games organization’s brazen loot of the exchequer. CAG found evidence of how the OC top bosses not only signed contract with the same foreign firm twice at an exorbitant price but also, for some inexplicable reason, allowed the firm’s staffers to draw their salaries for the better part of the ten month contract without even coming to Delhi. This fraudulent payment on the part of the OC resulted in loss of Rs 5.7 crore to the Indian government.

The auditors during their probe found that OC hired Greg Bowman as consultant for handling the sports presentation programme for CWG (the format in which medals are to be presented to winners and how it should be showcased to the spectators and broadcast audiences) in October 2009 at a cost of Rs 80.23 lakh. OC entered into a second contract with a company M/S Great Big Event Private Limited (GBE) for Rs 2.3 crore on January 2010 to assist Bowman.

One of the irregularities that CAG came across was the conflict of interest in the award of contract. Bowman was also the managing and creative director of the firm GBE Private Limited.

CAG found that the OC on September 2010, after working with the firm for seven months, entered into another agreement with it at an exorbitant fee of Rs 3.88 crore without terminating the earlier contract. This was over and above the Rs 1.47 crore that the OC paid to the firm for the seven month period before termination of contract.

 
ABOUT THE AUTHOR
Moushumi Das Gupta

Moushumi Das Gupta writes on infrastructure, urban development, water, and gender issues.

Follow India news real-time updates and the latest news covered on Hindustan Times, featuring today's critical updates on Sonam Wangchuk LIVE and more across India.
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