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This is an archive article published on August 12, 2010

Games: CAG report finds faults with Kalmadi committee

CAG in its interim report has found some discrepancies in choosing consultants for CWG contracts.

The Comptroller and Auditor General of India (CAG) in its interim inspection report has found some discrepancies in choosing consultants for global broadcasting rights and sponsorship deal for the forthcoming Commonwealth Games here.

The report found that the games Organising Committee of which Suresh Kalmadi is the chairman had awarded the sponsorship deal to Melbourne-based Sports Marketing and Management (SMAM) at a very cheap price,official sources said tonight.

The sponsorship deal has since been scrapped on grounds of ‘non-performance’,a claim that has been refuted by the Australian firm,which said the charges against it are “imaginary”.

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UK’s Fast Track Sales Ltd was chosen as the consultant for the broadcasting rights.

The inspection of the CWG Organising Committee was done by field officers between November 2009 and January 2010. The inspection report has been sent to the Committee for its comments and it was not immediately known if a response has been made.

It was pointed out that the report related to an inspection done by field officers and it was not an audit report. It was also said that the final report may differ from the findings of the inspection report.

The sources said there was also a mention of Maxxam International in the interim report which raised questions on the procedures adopted for the Queen’s Baton Relay,held in London last year.

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This deal for organising the event went to Maxxam which reportedly had emerged as the highest bidder.

The report also has found that OC violated norms by giving Ernst and Young consultancy contract of Rs 22.36 crore and ignoring PWC bid.

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