CAG sees through Kalmadi’s Games

An interim report of the Comptroller and Auditor General (CAG) has pointed out financial irregularities in the carrying out of deals by the Organising Committee of the Commonwealth Games, led by Mr Suresh Kalmadi. The report points towards a potential loss of more than Rs 31 crore, besides lack of financial discipline in handling financial matters.

The report was prepared following inspections by CAG teams between November 2009 and January 2010. CAG officials maintained that these were internal reports and would be released only after considering the Organising Committee’s replies.

The report is likely to be published only in 2011. The report said the OC incurred avoidable expenditure of Rs 6.16 crore while hiring a consultant for the Queen’s Baton Relay (QBR) in London last year. There were three bidders.

While the previous two had presented bids worth less than Rs 2 crore, the third bidder, Maxxam International, had presented a bid worth over Rs 8 crore. The contract was awarded to Maxxam International.