Thursday, August 5, 2010

CWG: Heads roll to save big fish in clean-up ‘act’

The Suresh Kalmadi-led Organising Committee, which has been forced to cleanse the Commonwealth Games stables, on Thursday suspended joint director TS Darbari, former deputy director-general Sanjay Mahendroo, and head of the accounting department M Jeychandran. The executive board also terminated the contract of Melbourne-based Sports Marketing and Management (SMAM) for “non-performance”.
The names of Mr Darbari and Mr Mahendroo had figured in the investigations into the charges of irregularities in the services provided during the Queen’s Baton Relay in London.

These actions came on a day when the government was forced by the Opposition in Parliament to promise speedy investigation into the allegations of corruption. “As far as corruption is concerned, the government will take all actions. I will write to the authorities, including the finance minister, and request him to go seriously into the matter if there is anything... The agencies must speed up action and catch whoever is responsible,” sports minister MS Gill said.

With the Commonwealth Games under cloud and the government earning flak for mismanagement, the minister used the occasion to announce the denial of permission to the Kalmadi-led Indian Olympic Association (IOA) to bid for the 2019 Asian Games. “The IOA had on April 28 this year sought ‘in-principle’ approval to host the 2019 Asian Games. It has projected an operating budget of $401 million for the conduct of the games and likely generation of $450 million. These projections are based on the budget and revenues of the Guangzhou Asian Games 2010 and have little relevance in the context of hosting the games in India in 2019. Accordingly, the present proposal submitted by the IOA does not merit consideration,” the minister said.

But Mr Gill, who was replying to a barrage of questions from the Opposition in Rajya Sabha, ruled out the removal of Mr Kalmadi from the organising committee of CWG. “It is too late for that. You cannot change horses just before the war,” Mr Gill told the House. He also discounted the possibility of any decisive central intervention when he said the suggestions for a new committee to oversee the Games preparations were not feasible. “These things won’t work,” the minister said and assured that “like a typical Indian wedding, everything will be in place”. The minister also invoked nationalism—“have faith in India”—and the Almighty—“God is with us”—as the Opposition hauled the government over the coals in Parliament.

The Congress leadership, in any case, has been dropping clear hints that the time for juggling with the Games leadership has passed. “The horses have bolted into a distance,” a senior minister told ET while explaining that action against key members who are responsible for the leakage of funds may not be possible at this juncture.

By evening, there was some relief for the organisers when Hero Honda, one of the sponsors of the embattled Games, indicated it will stick with its commitment. PSU sponsors like Indian Railways and NTPC have asked for assurance from the OC that no part of its contribution will go as service charge or commission to any agency. NTPC had pledged a sponsorship donation of Rs 50 crore, but this money may not be paid if the OC doesn’t meet its demand. Apart from Hero Honda and NTPC, the other big cash sponsor for the Games is Central Bank of India. The Games have managed around Rs 400 crore in sponsorship of a target of Rs 960 crore. Of this, only around Rs 100 crore is cash sponsorship and the rest is in the form of either service-related brand endorsements or donations and grants from PSUs.

In another development, RK Mattoo was appointed as the new treasurer of the Organising Committee. Mr Mattoo's appointment follows the resignation of Anil Khanna. Mr Khanna quit as treasurer in wake of allegations that his son's firm secured the contract for laying synthetic courts at the RK Khanna Tennis Stadium, one of the venues of the October 3-14 Games.

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