CBI is likely to investigate the role of a Mauritius-based company for alleged irregularities in executing over Rs 70 crores contracts for providing consultancy for Commonwealth Games-related works after receiving a reference from sports ministry in this regard.
Acting on PMO recommendation, the sports ministry has sent a letter to CBI to probe the antecedents, flow of funds and works carried out by Event Knowledge Services (EKS), an international private consultant, for alleged wrongdoings.
EKS was given three contracts of over Rs 70 crores by the Games organising committee to extend consultancy services for the venue development and management, games workforce, and games planning and project management services.
“A reference has been received from the sports ministry and a preliminary enquiry into the matter is on,” a CBI official said.
Taking a serious view of the Shunglu Committee’s findings, the PMO had suggested to sports ministry a probe by CBI and Enforcement Directorate.
It 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.
“We will also be sending a reference to ED to probe alleged violation of foreign exchange acts and money laundering,” a sports ministry official said.
The committee in its report estimated financial loss of over Rs 18 crores to the government due to alleged irregularities in granting workforce contract.
The Prime Minister had on October 25, 2010 appointedthe 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 2010.
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 jailed OC chief Suresh Kalmadi, chief executive officer of CWG federation Mike Hooper and other senior functionaries of the Games body.
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), the report 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,” it said.
The committee has scrutinised projects like sponsorship, ticketing, overlays, ceremonies, technology contracts and catering among others executed by the OC.
Besides Kalmadi,former OC secretary general Lalit Bhanot, director general V.K. Verma, deputy director general — procurement Surjeet Lal and joint director general-sports A.S. V. Prasad among others are in Tihar jail for their alleged involvement in the CWG scam.