New Delhi:
Premier Brands, the company contracted to produce the merchandising for the Commonwealth Games, has pulled out of its contract. The exit is tinged with the mismanagement that has become the hallmark of those handling the Games.
Premier came on board on May 19, but the company says four delays so far have cost it mammoth losses. Items were meant to go on sale when the Queen's Baton Relay entered India on June 25.
The Organising Committee has responded to Premier Brands pulling out by saying that the final contract was not signed with them as Premium Brands kept asking for changes in contract.
Merchandise for the 2012 London Olympics is already on sale. Also on the market already: memorabilia for the Guangzhou Asiad that takes place right after the Commonwealth Games. Merchandising brings in huge revenue at most events of this scale, and in the past, Chairman of the Organising Committee, Suresh Kalmadi, had stated that this money would be used to pay back part of the massive loans given by the government for the 2010 Games.
With accusations of broad-based corruption skidding into the open everyday, companies like Premier say the Organising Committee has gone into virtual paralysis, refusing to sign critical documents or sanction plans. Among the most serious allegations of financial violation - that broadcast and sponsorship deals were awarded without due diligence, and cost the Games several crores.
An interim audit report blames, among others, Chairman Suresh Kalmadi for hiring firms that did not offer the best bids. While Team Kalmadi has refused those charges, stating they picked experience over cost, the crisis has embarrassed the government. So much that the Prime Minister and Sonia Gandhi met with senior Congress leaders on Friday evening decided to leave it to the government to take a decision on the alleged corruption in the Commonwealth Games. Sources say the Sports Ministry has been empowered to make all final decisions regarding the Games.
Premier came on board on May 19, but the company says four delays so far have cost it mammoth losses. Items were meant to go on sale when the Queen's Baton Relay entered India on June 25.
The Organising Committee has responded to Premier Brands pulling out by saying that the final contract was not signed with them as Premium Brands kept asking for changes in contract.
Merchandise for the 2012 London Olympics is already on sale. Also on the market already: memorabilia for the Guangzhou Asiad that takes place right after the Commonwealth Games. Merchandising brings in huge revenue at most events of this scale, and in the past, Chairman of the Organising Committee, Suresh Kalmadi, had stated that this money would be used to pay back part of the massive loans given by the government for the 2010 Games.
With accusations of broad-based corruption skidding into the open everyday, companies like Premier say the Organising Committee has gone into virtual paralysis, refusing to sign critical documents or sanction plans. Among the most serious allegations of financial violation - that broadcast and sponsorship deals were awarded without due diligence, and cost the Games several crores.
An interim audit report blames, among others, Chairman Suresh Kalmadi for hiring firms that did not offer the best bids. While Team Kalmadi has refused those charges, stating they picked experience over cost, the crisis has embarrassed the government. So much that the Prime Minister and Sonia Gandhi met with senior Congress leaders on Friday evening decided to leave it to the government to take a decision on the alleged corruption in the Commonwealth Games. Sources say the Sports Ministry has been empowered to make all final decisions regarding the Games.
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