Tuesday, January 11, 2011

OC inflated list of overlays to favour vendors

Officials of the Common wealth Games Organizing Committee led by Suresh Kalmadi are in for fresh problem with the Comptroller and Auditor General (CAG) audit having found that OC had reduced items from overlays by up to 58% without affecting the Games."As this does not seem to have affected the overlays work later on, it clearly establishes that quantities were inflated at the time of scoping and tendering," the audit said. The CAG observed that "the possibility of this inflation to give undue favour to vendors cannot be ruled out in the light of several other indications of collusion."

Interestingly, as per the tender guidelines, the vendors were required to submit experience certificate of providing overlays for at least one major multi-sporting occasion such as Olympics, CWG or Asian Games for pre-qualification. But the audit found that none of the four vendors who were declared qualified had submitted the certificate. If the actual cost and estimation lastly authorized by the government is taken into account, the overlays bill should not have exceeded Rs 450 crore. This was also the figure OC had initially projected for overlays in 2007.

The Kalmadi-led OC had initially drawn up an overlays budget estimate of Rs 450 crore in July 2007. This was inflated to Rs 870 crore in September 2009 when it was presented before the sports ministry. This was further enhanced to Rs 948 crore a month later when extra provision for some security and technology related items was added. But the finance ministry directed the OC to reduce this budget estimate, which it then brought it down to Rs 713 crore, including a contingency of Rs 40 crore, in October 2009. Finally, the government accorded approval for Rs 687 crore in January 2010.

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