CAG questions CWG contracts

first_imgThe Comptroller and Auditor General of India, in its interim report, has said dubious procedures were followed in awarding the sponsorship deal for the Commonwealth Games to Melbourne-based Sports Marketing and Management (SMAM).Headlines Today has accessed a copy of this confidential report, which nails the Organising Committee of the Commonwealth Games.In the sponsorship contract awarded to SMAM, the audit watchdog noticed some serious lapses in procedure. It has raised serious questions about the involvement of Commonwealth Games CEO Mike Hooper in the entire negotiation process.The CAG report reveals that it was the CEO, CGF who insisted on the appointment of SMAM, putting question marks over the entire process. It raises serious doubts over the process of inviting tenders saying that the OC did not provide adequate publicity inviting tenders for the sponsorship contract as per its own guidelines.The OC also did not follow the guidelines of the CVC in relating to appointment of consultants. The time prescribed for submission of  tender was also not adequate and was not in keeping with CVC guidelines, it says.The OC is also accused of not carrying out enough research to survey other firms giving sports marketing services.The OC also agreed to bear tax liability of SMAM over and above its liability of 10.54 per cent. It did not question the commission paid to PSUs as per SMAM contract even though other firms were offering less, says the report.The OC set an annual performance review bracket as opposed to the half-year term as set for Fast Track, the consultant for international broadcast rights. No penalty clause in case of failure in delivery was set in the contract, the report adds.advertisementlast_img

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