CWG scam: UK firm owner may turn approver

NEW DELHI: Arrested former Commonwealth Games Organizing Committee chief Suresh Kalmadi may be headed for more trouble with Ashish Patel, the UK-based owner of AM Cars and Films, likely to turn approver in the Queen's Baton Relay case. 

After his arrest in irregularities in the timing, scoring and results contract for the Commonwealth Games, Kalmadi can be booked for payments made to the UK firm for hire of cars, screens and portable toilets for the October 2009 function flagged off by the British Queen in London. 

No contract was entered into with the firm on the plea that the OC had to respond to last-minute demands by British authorities — an argument that is undone by evidence that the organizers were in touch with Patel much earlier. Evidence has also surfaced of Kalmadi himself authorizing payments to the firm quoting paucity of time. 

Now, Patel could be an approver in the two cases related the QBR contract registered by CBI in November 2010. A two-member CBI team that went to London to question Patel, who is also an accused, and to gather other evidence said the businessman had been cooperative. 

"Ashish Patel was questioned twice and he has given us important details on the whole contract. We showed him documents which we have collected during investigations. We told him where he stands," said a source. Officials added that if Ashish Patel did not cooperate, CBI will soon begin the process for his extradition. As he is a British citizen, Patel cannot be arrested by CBI but he was questioned at length on exchange of emails between arrested OC officials Sanjay Mohindroo and T S Darbari, release of payments and the so-called contract. Patel could not explain the documents though CBI could not get a statement given his nationality. 

Patel is expected to submit his reply to the Scotland Yard police department which will pass it on to the CBI. "We have substantial evidence against Patel of his complicity with Darbari and Mohindroo. Being an accused, he could turn approver declaring that he was also part of the conspiracy," said an official. 

Before questioning Patel, CBI took permission of UK's Serious Fraud Office. CBI is also hopeful the SFO will register a case against the car rental firm (AM Cars) for alleged overpricing. 

In its FIR, CBI stated, "It is alleged that in relation to the QBR held on October 29, 2009, the OC awarded the work of transportation to the AM Car and Van Hire Ltd at exorbitantly high rates without following the standard tender process." 

CBI has registered nine FIRs in different cases related to alleged corruption in the mega sporting event held in Delhi on October 3-14 last year.

Source: http://timesofindia.indiatimes.com/india/CWG-scam-UK-firm-owner-may-turn-approver/articleshow/8085335.cms

Kalmadi should've been sacked a year before CWG: Shunglu panel

NEW DELHI: The Centre's decision to depute a chief executive for the Commonwealth Games was too little and too late as Suresh Kalmadi should have been sacked a year before the event, the V KShunglu committee has said. 

Dubbing as totally inadequate ex-sports minister M S Gill's September 25, 2009 advice to PMManmohan Singh that handpicking a CEO and a set of officers was the "essential minimum", the committee said, "Nothing short of the removal of Kalmadi could resolve the issue." 

In its final report on governance issues, the panel starkly said, "The question then is was it not obvious to the government that nothing short of Kalmadi's removal would resolve the issue. Confrontation (2006-08) had failed, cooperation had led to no improvement (2008-09). There was no choice but to sack Kalmadi. "In his letter, Gill had said, "I have had intensive meetings with Kalmadi and Randhir Singh, the secretary general, Delhi CM, the cabinet secretary and T K A Nair. We have devised a line of action to strengthen the OC management immediately. The structure cannot be changed, but this is the essential minimum now, with no time to lose." 

Indicting the sports ministry, the panel said, "The department of sports had failed, and at some level was complicit." In fact, so inefficient was the budget planning and expenditure estimates that in the end only Rs 3,188 was left unspent. Although the panel said that deputing a retired PMO hand Jarnail Singh as CEO did not help, it had a good word for officers like Jiji Thomson and Sanjeev Mittal, who held charge of catering and ticketing in the face of Kalmadi's hostility. 

It is interesting to find that the Shunglu committee's revelations indicate the decision against removing Kalmadi—as the "structure cannot be changed" remark indicates—was a result of discussions involving the PMO. 

The report said it was commonly known that the OC was ruled by "Kalmadi and his cabal". According to it, Kalmadi called the shots or authorized certain henchmen to do so. "The numerous drawbacks in the organization of the Games and the excessive cost are attributable to his flawed decisions." 

Going back to when the BJP-led NDA was in power, the panel blamed the party's erstwhile Bhopal MP and former sports minister Vikram Verma for not pressing Kalmadi on his claims to deliver a revenue neutral Games. "Commencing February 2003 to the end of that year, Kalmadi and Verma shared a warm relationship," the report said. 

The Shunglu committee, whose detailed and well documented reports have sparked off a deep unease in the government, pointed out that the Jaipal Reddy-headed GoM set up to oversee the Games had failed to deliver. "Even if an oversight role was contemplated for the GoM, in practice it was unable to assert that role," it said. 

Looking at the GoM's record, the panel pointed out that it had failed to act on a sports ministry proposal to curtail the Kalmadi-led OC. "At the 13th meeting of the GoM (held on March 10, 2008), the youth affairs and sports ministry made a powerful plea for restricting the absolute power of the organizing committee by making a suitable amendment to the memorandum of the organizing committee," the report said. Noting that the reports to the GoM were scratchy, it said, "These (progress reports) are low on content and it is anybody's guess what is going on." The panel also pulled up the urban development ministry for its inconsistent supervision of Games-related projects like the Games Village where it acquiesced to a bailout for the builder. 

The panel felt the "implicit decision to conduct the Games through a private non-profit society was an error of judgment compounded by the personality of its chairman for whom the difference between fact and fiction was academic. Emergency measures ameliorated the situation but at a very high cost". 

Pointing out that a little over Rs 28,000 crore was spent on organizing the Games, which was a "galactic jump" from Rs 300–400 crore estimated in April–May 2003 and reiterated by Kalmadi in August 2003 prior to the Cabinet approval in September 2003, the committee said that at no stage was an overall budget prepared by the sports ministry or required by the finance ministry or Cabinet.

Source: http://timesofindia.indiatimes.com/city/delhi/Kalmadi-shouldve-been-sacked-a-year-before-CWG-Shunglu-panel/articleshow/7879708.cms

Kalmadi, Lalli in Shunglu panel glare over CWG broadcasting rights

Suresh Kalmadi appears to be in for more trouble after the Shunglu Committee submitted an interim report on Monday on the irregularities in awarding broadcast rights for the Commonwealth Games.

According to top government sources, the sacked Organising Committee chief is likely to come under spotlight because of his alleged links with contractors "favoured" with broadcast rights.

It is learnt that the committee, which submitted the interim report to the Prime Minister's Office, has squarely blamed the suspended Prasar Bharati CEO B. S. Lalli for causing a loss worth Rs 135 crore to the exchequer.

Lalli has been accused of favouring private firms in awarding broadcast contracts for the 14-day sports extravaganza. Lalli is already under suspension on charges of financial irregularities in other cases related to Prasar Bharti.

Officials said the heat on Lalli will also singe Kalmadi as his name has been linked to contractors who outsourced their work.

Prasar Bharati gave a contract worth Rs 246 crore to SIS Live, which is in turn being accused of subletting it to Zoom Communications.

Zoom Communications got the contract for Rs 177 crore but did work for only Rs 111 crore.

Probing these contractors and the opening of the files is likely to lead to Kalmadi's doors, the officials added.

During the course of investigation, Kalmadi may be grilled extensively on the contract terms and whether there were any links of the " favoured" contractors with Kalmadi or any of his close family members and friends.

The panel led by former comptroller and auditor general V. K. Shunglu is racing against time to collaborate and compile all documents related to projects executed by various departments in the run up to the mega sporting event held in October 2010.

The term of the Shunglu panel has been extended till March 31 to allow it to submit a full report on financial irregularities relating to the Games.

The panel's final report will also look into the alleged bungling in awarding of contracts by several government agencies such as the MCD, the NDMC, the DDA, the PWD, the CPWD among others.

Source:- http://indiatoday.intoday.in/site/Story/128331/top-stories/gwg-mess-kalmadi-&-lalli-in-shunglu-panel-glare.html