Already engulfed in a spate a of corruption scandals, the Commonwealth Games was today rocked by a fresh scam with reports that one of the members of the Commonwealth Games Federation (CGF)'s coordination commission had ownership links with two companies which were awarded contracts.

According to NDTV, Craig McLatchey, a member of the Commonwealth Games Federation's coordination commission till 2009, had stakes in Sports Marketing and Management (SMAM) and Event Knowledge Services (EKS).

While the contract with SMAM worth nearly Rs. 230 crore was scrapped by the organising committee a few days back in the wake of the corruption charges, EKS has still a deal worth Rs. 29 crore.

The SMAM's deal was scrapped after corruption allegations emerged; but the Australian-based company was quick to rubbish reports, saying the OC has “wrongfully, viciously, terminated agreement,” and the grounds for termination are concocted.

EKS was roped in to provide consultancy on the mega-event.

Proper procedure

The TV report, quoting documents, said that the OC did not follow proper procedure in choosing Consortium of EKS and Ernst and Young as consultant(s). There was insufficient competition for selection of consultant with no comparable financial bid, the report said.

The interim report by the Comptroller and Auditor General (CAG) described it as an undue favour by OC in awarding contract to EKS.

However, CGF CEO Mike Hopper said there was no wrong doing in awarding the contract and due process had been followed.

“I don't see what the issue is, as Mr. McLatchey's conflict of interest was declared earlier to all the parties. Appropriate process was followed and there is nothing to worry,” Hooper said.

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