India tour of Sri Lanka, 2017

OC Justifies Deal With Fast Track

New Delhi: Stung by the CAG's interim report which has found discrepancies in some deals, the CWG Organising Committee on Thursday defended its broadcasting rights deal with Fast Track despite a high commission paid to
oc justifies deal with fast track - India TV
PTI 12 Aug 2010, 01:01 PM IST
New Delhi: Stung by the CAG's interim report which has found discrepancies in some deals, the CWG Organising Committee on Thursday defended its broadcasting rights deal with Fast Track despite a high commission paid to them, saying the UK company had doubled the revenue target.

The Comptroller and Auditor General of India (CAG) in its interim inspection report has pointed out that Fast Track was preferred over Sports Marketing and Management (SMAM) despite a high comission and thus OC lost on revenue generation.

SMAM had offered its services for 12.5 percent while OC gave 15 percent to Fast Track.

OC Secretary General Lalit Bhanot said it was a well thought out decision to award the deal to Fast Track as they did not want to give too many contracts to SMAM, which already had bagged the sponsorship contract.

"Fast Track is a well known company in this field and we have to ensure that company which has the experience is given the job. They had done it in Melbourne and other Commonwealth Games. It was a very wise (decision) that we did not put all the eggs in one basket," Bhanot said.

"Fast Track has almost doubled the revenue we targetted. I think it's fully justified and a proper procedure was followed and it was a decision taken by the Board that not to give both the contract to one firm despite the fact that they were charging less.

"But now the end result is that we have achieved double the target... we have earned more," he said.

The OC had recently scrapped its sponsorship deal with SMSM on grounds of 'non-performance', a claim that has been refuted by the Australian firm, which said the charges against it are "imaginary".

The CAG report, it is learnt, has also alleged that high profile officials such CWG chief Mike Fennel and CEO Mike Hoper were involved in various discrepancies.

Hooper refused to comment on the developement.

"I have not seen the CAG report myself. I have seen only media reports. I will ask OC to get us a copy of the CAG report. Will comment only after seeing it," Hooper said. 

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 on Wednesday night. 

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". 

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. 

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

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