Kalmadi sacks top aides, ends deal with SMAM

Grappling with a series of corruption allegations, the Organising Committee of the Commonwealth Games today placed under suspension two of its senior officials and cancelled a controversial deal with an Australian sports management firm.

Also today, the Treasurer of the OC, Mr Anil Khanna, quit his post today after media reports which said that the contract for laying the synthetic surfaces at the R K Khanna Tennis Stadium, one of the Games venues, was awarded to a company whose Indian branch is headed by his son.

Mr Ashok Matoo, who had resigned as Treasurer of the OC some months ago, was appointed to the post again, with less than two months to go for the Games that Delhi is slated to host from October 3-14.

The two OC officials suspended today were its Joint Director General T S Darbari and M Jayachandran, Joint Director General (Finance & Accounts).

Their role as well as that of Mr Sanjay Mohindroo, a Deputy Director General who had quit the OC some months ago, will now be probed by the Enforcement Directorate, to whom the entire matter regarding the launch of the Queen's Baton Relay in London on October 29 has now referred.

Mr Lalit Bhanot, Secretary General of the OC, told a press conference that the decision to remove the officials was taken at a meeting of its Executive Board here earlier in the day.

The meeting was called by Mr Kalmadi following a series of media reports alleging corruption in the organisation of the Games, which Delhi is scheduled to host from October 3-14.

At the centre of the allegations against the OC is a payment of about 2,50,000 pounds made by it to A.M. Films, a United Kingdom-based company, for services rendered by it during the Queen's Baton Relay in London on October 29, 2009.

The company is being probed by authorities in the UK for inadequate paperwork related to the payment, for which it had claimed a VAT refund. As a series of media reports raised suspicion about corruption in the deal, Mr Kalmadi had said that the firm had been recommended to it by the Indian High Commission in London.

At a press conference here some days ago, Mr Kalmadi had also produced e-mails from an employee of the mission to substantiate his claim.

Two days ago, Mr Kalmadi met External Affairs Minister S M Krishna, who apparently told him that the e-mail produced by him was not genuine and was probably doctored.

This forced Mr Kalmadi to order an inquiry into these and other allegations by a high-level committee of OC officials and today's action against the officials was made after the inquiry committee submitted an interim report.

The Indian mission in London had denied that it had recommended the company to the OC and that the e-mail produced by Mr Kalmadi was from a person who was very junior and was not authorised to make such recommendations.

The inquiry committee, among other things, looked into the payment to AM Films for hire of cars, portable toilets, video cameras, video screens and other facilities as well as the High Commission's contention that the letter purportedly sent by its employee was not genuine.

The deal with the Sports Marketing and Management (SMAM) of Melbourne, which was to bring in sponsors for the event, was terminated on the ground that it had failed to fulfil its commitments.

The arrangement with the company had raised eyebrows after media reports said that it would be getting a huge commission on sponsorship amounts being given to the OC by leading public sector units and Government organisations.

Mr Bhanot said the OC had been reviewing the contract with SMAM for some weeks and had decided to terminate it today, after giving them due notice, after receiving legal opinion in favour of such a move.

He also made it clear that no a single rupee had been paid to the firm so far by the OC,

On the decision to act against Mr Darbari and Mr Mohindroo, Mr Bhanot said they were responsible for the delivery and conduct of the launch of the Queen's Baton Relay in London on October 29, an event at which Queen Elizabeth II and President Pratibha Patil were present.

He said the suspension would remain in force until the inquiries against them were completed. He said the officials would be given a chance to explain their position. In the case of Mr Jayachandran, who was not heard before today's decision, the OC has called him to explain his position tomorrow, after which a view would be taken.

Mr Khanna, who resigned as Treasurer, told mediapersons that he was not involved in any way with the award of the contract and was not, in fact, holding the post when the deal was finalised.

He also said that his son's company, Rebound Ace India, had no connection with Rebound Ace Australia, which had won the contract to lay the surfaces at the venue for the tennis event.

He said Rebound Ace India was just a distributor of Reliance Ace Australia and not a subsidiary. He said the Australian firm had no stake in his son's firm. Moreover, the Indian firm had not received any money for the deal and there was, therefore, no question of any impropriety, he said.

NNN