Delhi Games organisers deny duping Oz
Vincent Morello, AAP
January 21, 2011, 6:25 am 84 CommentsSend
Delhi Commonwealth Games officials have denied claims Australian firms had been dudded millions of dollars for services provided, saying payments will be released this week.
It has also been holding back money owed to Commonwealth member associations for damage done to the Games village, which was in substandard condition just days before the event in October last year.
Australia's winning medal tally at the Games was soured when a washing machine was thrown off an eighth-storey balcony of the village, where its athletes were staying, on the evening of the closing ceremony.
India's controversial Games figure, Suresh Kalmadi, chairman of the Organising Committee (OC), says major events production guru Ric Birch departed Delhi before the closing ceremony, leading to a breakdown in communications.
Mr Kalmadi says the OC is holding back the last 15 per cent of the contractual amount owed Mr Birch's company, Spectak Productions, which Mr Birch has estimated to be $350,000.
Mr Birch has launched a $3 million-plus class action against the Indian government, which includes at least four of Australia's major events companies contracted to the Games, News Limited reports.
Howard and Sons pyrotechnic company says it is owed $300,000 in unpaid bills and has lost $900,000 as crucial firing equipment hadn't been released.
The OC says it paid 65 per cent of the contracted amount and the rest would be paid in a matter of days.
The OC says its contract underwent two changes and it needed clarity on taxes. , Mr Kalmadi said the tax advice had been obtained from chartered accountants and the payment would be released this week.
Sound company Norwest Products said it was owed $1 million, including $160,000 a week for six weeks for equipment needed elsewhere, News Limited reports.
The OC said it received original invoices only recently and full payments had been released, except for (a) performance bank guarantee amount.
Perry Crosswhite, chairman of the Australian Commonwealth Games Association (ACGA) said on Thursday it was one of many Games organisations owed money. A six-figure sum for travel subsidies was due the ACGA in November.
Responding, Mr Kalmadi said the OC had fully paid 39 of 71 Commonwealth Games Associations and released 70 per cent of funds to the rest.
After verifying cost of damages in the Games village, variation in team size and recoveries on account of security deposit items, for instance, the remaining amount would be released this week, he said.
OC transport chief JiJi Thomson said scores of suppliers from other countries had undergone a review process before receiving final payments.
Peter Varghese, Australia's High Commissioner to India, said his office has contacted the Indian government about unpaid debts to Australian companies that sought embassy assistance, but the official figure could soar if more companies come forward.
"I wouldn't have a figure on how many Australian companies, altogether, are still awaiting money," Mr Varghese told AAP from New Delhi.
Mr Varghese said there was no evidence disputed payments have affected Australia's trade relationship with India nor the perception of Australian companies choosing to do business in India.
The Games have been marred by allegations of corruption, dodgy building practices and cost blowouts.
A series of independent inquiries are underway from Indian organisations such as the Central Vigilance Commission and the Comptroller and Auditor-General.
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Same OZs were whinging for payments after 1st IPL, some itzy bitzy problems with India?
