This Article is From Mar 23, 2011

How Kalmadi's decision caused Rs 10 crore loss

New Delhi: There was world class food for the Commonwealth Games, but at loss of over 10 crores.

The papers received by NDTV through RTI show that Suresh Kalmadi had a direct role to play in causing this loss which could have been avoided.

This is what transpired.

In Dec 2009, 'Delaware North' an Australia-based firm was the only one to apply for the catering contract. But a month later, Kalmadi cancelled it on a technicality.
His reason being that they had not paid Rs 30 lakh as earnest money for the Rs 71 crore contract.

Kalmadi though was advised against re-tendering by Jiji Thomson, one of the specially appointed government officers assigned by the Centre to salvage the Games.

"In the limited time available, it would be extremely difficult to get a caterer of international standards... I would submit that this could have disastrous consequences besides legal implications," wrote Jiji Thomson, Special DG OC, Catering.

Yet, Kalmadi called for fresh tenders.

By April, Delaware North applied again. The Indian Railways applied too, but were rejected for lack of quality and experience.

But now with just four months left for the Games, Delaware said that it could no longer get the equipment on hire and so it would have to be purchased.

With no other option available this contract was now agreed to, but as a result it caused a loss of over 10 crores.

The company had to airlift kitchen equipment from the UK instead of shipping it, which caused a loss of Rs 7.5 crore and buying equipments instead of renting resulted in a loss of Rs 4 crore.

Suresh Kalmadi has always maintained that he never took any decision alone, but in deciding the catering contract he deliberately chose to overlook the advice given by his own top officer. The big question now is who will pay for this costly mistake?
 
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