PMO recommends CBI, ED probe in CWG contracts

New Delhi, May 8 (PTI) Taking a serious view of Shunglu
committee findings, the Indian Prime Minister's Office has
suggested to Sports Ministry a probe by Central Bureau of
Investigation (CBI) and Enforcement Directorate based on the
panel's report into alleged irregularities in the contracts
executed by CWG Organising Committee.
In its letter, the PMO has asked for probe by the
agencies specifically in works carried out by Event Knowledge
Services (EKS), an international private consultant, and other
irregularities pointed out by the Committee.
EKS was given three contracts of over Rs 70 crore by the
organising committee to extend consultancy services for the
venue development and management, games workforce, and games
planning and project management services.
The PMO has directed "expeditious action" on Prime
Minister Manmohan Singh's order in the matter and sought the
reply of Sports Ministry within a month on the fifth report of
the high-level committee appointed by him.
The financial loss suffered by the Government due to
favouritism for workforce contract aggregated to Rs 18.36
crore, the report said.
"Department of Sports may forward, to the CBI/ED, for
action as appropriate, relevant extracts of the report
pertaining to the matter of EKS, and the clear cases of
forgery, falsification, record creation etc., mentioned in
case of other highlighted irregularities," the letter written
to the Sports Ministry said.
The Prime Minister had on October 25 last year appointed
the high-level committee under the chairmanship of former
Comptroller and Auditor General V K Shunglu to investigate and
report all irregularities in executing various projects by
several government agencies during the Games held here between
October 3-14 last year.

The committee, in its report submitted to the PMO on
March 28, found several discrepancies in the projects executed
by the company and "collusion" among sacked OC Chief Suresh
Kalmadi, Chief Executive Officer of CWG Federation Mike Hooper
and other senior functionaries of the Games body.
"The contract was awarded on a single source basis on
the recommendation/statement of Mike Hooper, CEO of CGF that
EKS was much better informed regarding Delhi venues status
than any other International Consultant. This was both a
biased and misleading statement," the report said.
"CEO, CGF made every effort to ensure award of these
contracts to EKS. The CEO not only personally testified the
credentials of this firm but also justified the reasonableness
of rates and maydays utilisation and also attended the
Technical Evaluation Committee (TEC) meetings," it said.
The panel found indication of "personal interest" by
Kalmadi, currently lodged in Tihar Jail, in giving the
contract to EKS.
"The fabrication of the minutes of two meetings (to
decide on contracts) purportedly held on January 30, 2008 and
March 10, 2008 was strongly suggestive of collusion between OC
top management, CGF functionary and EKS for accomplishing its
pre-meditated objective," the report said.
Interestingly, the Games Planning and Project Management
Contract permitted EKS to assign the same to a sister concern.
EKS incorporated a new company in November, 2008 in Mauritius
by the name Event Knowledge Services Pvt Ltd.
The entire contract was assigned to the new company in
June 2009, thus, making a mockery of Quality Based Selection
System (QBS), it said.
"This is a fit case for reference to the CBI and the ED.
They would have to investigate the ownership of EKS Private
Limited, Mauritius and trace the flow of funds from the OC to
EKS private limited and onwards to other recipients.
"The aspects of fraud involved in this case would also
need to be investigated and suitable criminal action taken
against the guilty," the findings read.
The committee's fifth report has scrutinised all
projects like sponsorship, ticketing, overlays, ceremonies,
technology contracts and catering among others executed by the
Games OC.