This Article is From Feb 22, 2011
Alleged CWG corruption: Australian Firm, SMAM, fired
New Delhi: As the cries of corruption become louder and clearer, theorganizers of the Commonwealth Games are skidding into damage-controlmode.
Three members of the Organizing Committee, which is headed bySuresh Kalmadi, were suspended today. The Committee has also decided to fire an Australian company hired to land sponsorships for theCommonwealth Games for "non-performance."
SportsMarketing and Management (SMAM), based in Melbourne, was brought on board toland sponsors and advertisers. The company was allegedly entitled to up to23% commissions.
However, as NDTV first reported, the sponsorship so far is less than half its target - Rs 405 crore against a projection ofRs 950 crore. Most of the sponsors who've signed up so far are eitherIndian Public Sector Units (PSUs) or Indian companies who've reportedly dealtdirectly with the Organizing Committee.
SMAM,however, earlier this week claimed that it had got record-breaking deals worthRs 400 crore for the Games. The company said it "had not received a rupee so far"for its services. It also clarified, on Thursday, that it would not takea commission on contracts signed with PSUs. " Instead, SMAM willonly charge a management service fee to cover the costs related to delivery andservicing of the sponsorship benefits. Like for all its clients, SMAM does notbenefit in any way and is not remunerated on any grants or donations made bygovernment."
Evenas SMAM insisted that it was not being investigated by any governmentauthority, Lalit Bhanot of the Organizing Committee confirmed on Thursdayevening that the company and its contract had been studied closely by athree-member-panel set up to look into multiple allegations of corruptionleveled against individuals who include members of the Organizing Committee.
SMAMsays it has no connection to World Sports Group (WSG), a company beinginvestigated for an 80-crore kickback in a controversial broadcast rights' dealfor the Indian Premier League. The Inquiry Committee set up by Kalmadi isreportedly examining whether SMAM shares any DNA with World Sports Group.