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India's Commonwealth Games bills still not paid

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Many foreign companies see entry into India's booming market as one way of riding out the global financial storm, but Mark Dummett in Delhi says doing business there is not for the faint-hearted.

Ric Birch has worked all over the world. He is an impresario who organises the opening ceremonies of major international sporting events.

He has done six Olympics including Beijing, Sydney and Barcelona. He has helped design public extravaganzas in Mexico, Singapore and his native Australia.

He has also worked in India, where he produced the curtain-raiser for Delhi's Commonwealth Games, one year ago.

It was not easy. The biggest sporting event in India's history was supposed to be its chance to show off, much as China had done with the Beijing Games. But to those of us watching from the sidelines, the plan seemed to backfire appallingly.

Indeed, the weeks leading up to the games only seemed to reveal problems.

Parts of Delhi were flooded by the heaviest monsoon in years, work on the venues was not finished even though the whole thing had run massively over budget, a bridge collapsed, there was an outbreak of dengue fever and some athletes' bedrooms were slept in by stray dogs.

Payment outstanding

However, as one government minister had correctly predicted, everything came together at the last minute, just like at an Indian wedding.

Ric Birch does not want to work in India again

Ric's team worked like heroes.

Their opening ceremony was a grand success and, as a giant helium balloon was launched into the Delhi night sky, 60,000 proud spectators bellowed out the national anthem.

So does Ric ever want to work here again? "No, absolutely not." "India," he says, "stands for I'll-Not-Do-It-Again."

The final straw for Ric is the fact that he still has not been paid. He says he is owed $350,000 (£225,000) and the Indian government has not told him why he has not received his money.

"They don't answer correspondence, they've changed their phone numbers, they've changed their email address," he told me. "It's a rogue action."

Ric is not the only one in this situation.

According to a list compiled by foreign governments, of the 32 international contractors employed to help run the games, only two have been paid in full.

The total debt amounts to more than $80m (£50m) and some of the companies are now in danger of folding.

Their experience seems to support a recent World Bank survey which found that India was one of the hardest places in the world in which to do business, coming a lowly 134th out of 183 countries.

More damningly still, when it comes to enforcing contracts, the World Bank says that India is actually the second worst, coming only higher than East Timor.

Investigation

The Commonwealth Games companies I have spoken to said the Indian government had still not given them any indication as to why they were not being paid.

But the reason is hardly a secret, and it has to do with the biggest scandal of the games - corruption.

Games chairman Suresh Kalmadi resigned from his post in India's Congress party in November 2010
The man at the centre of things is Suresh Kalmadi, a veteran ruling-party politician, who sat on Parliament's ethics committee, and was appointed to run the Delhi games.

He is now behind bars, facing charges of taking bribes from contractors - allegations which he denies.

The government has made it clear that, until all the contracts that Kalmadi issued are fully investigated, the remaining money will not be released. And two independent committees claimed that some of the contracts issued to foreign firms were indeed suspicious.

One of the British companies they named was SIS Live, which televised the games, and is owed more than $20 million (£13m).
Timeline: Games scandal
October 2010: Games held in Delhi after weeks of problems and construction delays - corruption probe begins soon after
November 2010: Games Chairman Suresh Kalmadi resigns his post in the Congress party
November 2010: Officials TS Darbari, Sanjay Mohindroo and Games treasurer M Jayachandran arrested over alleged financial irregularities
January 2011: Suresh Kalmadi and Games secretary general Lalit Bhanot sacked
February 2011: Mr Bhanot and top official VK Verma arrested
March 2011: Head of India's anti-corruption watchdog forced to resign
April 2011: Suresh Kalmadi arrested

A spokesman for SIS Live angrily rejected the allegations it had done anything dodgy. Terence Fane Saunders described to me the committees' reports as grotesquely wrong and inaccurate - full, he said, of easily provable errors.

He claimed that no-one from either committee had contacted SIS Live to check their facts.

The UK High Commission in Delhi agrees with SIS Live and has written to the Indian government asking it to reconsider its treatment of the company.

That letter was followed up by a second one, regarding the fate of all the firms, signed jointly by the embassies of Germany, Australia, Italy, Switzerland, France, Belgium, the Netherlands and Britain.

Neither letter received an official reply and nobody seems to know if and when the money will ever be paid.

'Too risky'

Legal action could take years.

One frustrated Western diplomat admitted to me that it was possible that a few of the companies might indeed have paid bribes but it was inconceivable that all of them had.

"The whole thing," he says, "sends out a terrible message that doing business in India is just too risky."

The global economic crisis is now forcing foreign firms to look at India like never before. BP is the latest major firm to invest, recently announcing a joint venture worth more than $7 billion (£4.5bn).

But Ric Birch, whose company has not been accused of wrongdoing, will not be coming back.

"I'll be very happy to ignore India," he tells me. "There are plenty of other places where they pay their bills."

BBC News - India's Commonwealth Games bills still not paid
 
Wow not paying salaries is pretty , inhumane thing to do I mean that puts them in same line as our Pakistan Railways shame on India for not paying Ric I feel sorry for his family , I mean after all he did for India the ceremony and fire crackers and balloons
Same happened to Lalit mody he made IPL then he was kicked out unceremoniously
 
India is the only country with Corruption. Pakistan and China are building Ivory towers with their super-efficient and godly honest leaders. Congrats!!!
 
India is the only country with Corruption. Pakistan and China are building Ivory towers with their super-efficient and godly honest leaders. Congrats!!!

This thread is not about Pakistan or China, this is about India not paying its CWG bills.
 
But this should not even be a thread. This IS WORLD AFFAIRS, not INDIAN AFFAIRS. Not everyone derives sexual satisfaction by mentioning India 20 times daily.

India is a part of this world. So there is nothing wrong with this thread being here.
 
Is BBC suggesting we shouldn't delve into who paid bribes to Kalmadi or investigate into the international firms that facilitated the massive scale corruption?We need to figure out which foreign members were accessory to the crime.Is that so wrong?I don't think so.In fact,corruption should be dealt with such a strong hand itself.
 
Kalmadi has ruined CWG. Bills will be paid only after investigations of corruption are complete. The delay is not because India doesnt have money as some people think
 
it's in the right place.

even if some were involved in bribing, they did the work, so India owes it anyway. don't see how they can be arguing otherwise?

The CWG looked like a fiasco.
 
Kalmadi and company are in jail. Presumably there is no one to pay the bills
 
They are not part of this thread.

Read the title of the thread again:

India's Commonwealth Games bills still not paid

Kapish?
so what are you discussing here. How to spend Indian tax payers money ? Or wait .. wait ... dont tell me... AAhhh.. you are being a shrink diagnosing Indian psychology. Wow....

Kaput.
 
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