For the first time, the probe agencies are believed to have found evidence to directly link sacked chairman of the Organising Committee (OC) Suresh Kalmadi with “deliberate” delays in awarding of contracts related to the Commonwealth Games. The Central probe agencies have held him responsible for deliberate delays in awarding of contracts related to catering worth `66.59 crores to an Australian firm, Delaware North, and installation of the kitchen equipment to PKL London.
The Central agencies probing alleged irregularities in contracts related to the CWG include CBI, Central Vigilance Commission (CVC), Comptroller and Auditor General (CAG), Enforcement Directorate (ED) and the high level Shunglu Committee appointed by the Prime Minister.
Sources in the agencies said that while signing the catering contract, even the Olympic formula of awarding the contract to one company for both catering as well as supply of equipment, was allegedly violated. The Delaware North had signed an agreement worth `66.59 crores for catering and M/S PKL, London, signed an agreement for installation of kitchen equipment worth `9.50 crores with the OC. Both the contracts were decided at the last moment by Mr Kalmadi. “File related to the catering contract kept lying in the office of Mr Kalmadi in OC for several months. There was almost three months deliberate delay by Mr Kalmadi, which forced the OC to hire two Russian planes (AN-124) to airlift the catering equipment from London at the rate of around `8 crores. This was an additional burden on OC,” sources said. Probe agencies are now trying to ascertain the intention behind the delay, sources added.
The expression of interest for the catering tender was floated on June 27, 2008, following which 25 players had submitted their bids.
The tenders were floated in August. In the original contract, the total allocation for equipment was just `20 crore. The OC was supposed to hire kitchen equipment on rental basis as part of the same catering budget.
The delay in awarding the contract forced the OC to purchase equipment for the firm which would install them.