Contractors still waiting for £50m from Delhi Games organisers
Friday 22 July 2011
Related articles
Nine months after India hosted the Commonwealth Games, companies around the world are still owed tens of millions of pounds in outstanding payments. They say they have run into a brick wall in dealing with officials in Delhi, where the issue had become entangled in a wide-ranging criminal investigation.
Companies that provided services ranging from broadcasting to biographical information about athletes say requests for payments have become lost in a bureaucratic jungle. At least one company was forced into receivership as a result, while others have had to lay off staff. Diplomatic sources have put the amount of money still outstanding at £50m. One British company, Satellite Information Services (SIS), says it is owed £15m for its provision of broadcasting services for the games, held last October. The company's chief financial officer, Jim Campbell, said despite SIS's performance being roundly praised, only half the agreed fee of £30m had been paid.
Furthermore, he said the company had endured what he termed a smear campaign within the Indian media and had been inaccurately criticised in a report commissioned by the Delhi authorities. "Operationally speaking, we had a very successful games. Now we are sitting here with a considerable amount of money outstanding," he said.
This week, the plight of SIS and other UK companies was formally raised in parliament. In a written question, the former sports minister Gerry Sutcliffe asked the Foreign Secretary, William Hague: "What steps his department are taking to assist British companies, such as SIS, who are yet to receive payment from the Indian government for contracts relating to the 2010 Commonwealth Games?"
Foreign diplomats in Delhi say they have repeatedly raised the issue with Indian officials. Earlier this year, eight nations – Australia, Belgium, Britain, France, Germany, Italy, the Netherlands and Switzerland – jointly wrote to the Sports Minister, Ajay Maken, and the Finance Minister, Pranab Mukherjee. There has been no formal response. The British High Commissioner, Sir Richard Stagg, said yesterday: "We are very concerned. David Cameron has raised this with the Indian Prime Minister. We think it's profoundly unsatisfactory and contrary to all the norms of proper commercial relations."
Estimates suggest a minimum of 20 companies are owed outstanding sums. One of them, InfoStrada Sports, is a multinational company that provided various services, including the reporting of events. A company spokesman, Steve Dettre, said the equivalent of £370,000 remained unpaid. "They keep changing the goalposts and saying we did not deliver certain things. We made all our deliveries," he said.
Those trying to recoup money say the issue has now become bogged down in the criminal investigation into the games. The chairman of the games organising committee, Suresh Kalmadi, and other senior officials have been arrested on charges of corruption.
An investigation carried out by a former government auditor, VK Shunglu, made various allegations about several international companies. British officials say they have seen no evidence to support claims of wrongdoing by UK companies. Among the allegations are that SIS is an illegal company and that it "colluded" with a state broadcaster in order to net profits of £18m. SIS has strongly denied the allegations.
Another problem for foreign companies is that their contacts were held with a variety of Indian public bodies. In January, when he was appointed sports minister, Mr Maken vowed that the payments would be sorted out within 10 days.
-
Have shock jocks gone too far after Rush Limbaugh called Sandra Fluke a slut?
-
Former Google exec says he has 100,000 emails showing how 'immoral' company avoids paying UK tax
-
Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
-
World news in pictures
-
Briton to face court after confessing to slitting his two children's throats in Lyon flat
- 1 Asteroid nine times the size of the QE2 liner to sail pass Earth
- 2 Notes from a small island: Is Sealand an independent 'micronation' or an illegal fortress?
- 3 British business: We need to stay in the European Union - or risk losing up to £92bn a year
- 4 You thought Ryanair's attendants had it bad? Wait 'til you hear about their pilots
- 5 It’s official: thanks to Stephen Hawking's Israel boycott, anti-Semitism is no more
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Independent Dating
iJobs General
Recruitment Consultant
£23000 - £27000 per annum + Uncapped bonus + leading benefits: Randstad Educat...
Urgently Required - Reception & Foundation Level teachers!!!!
£90 - £130 per day: Randstad Education Southampton: Randstad Education are loo...
SEN Teacher - Hampshire
£90 - £130 per day: Randstad Education Southampton: Randstad Education Southam...
School and Nursery Administrator Needed in Southwark
£65 - £100 per annum: Randstad Education London: We are currently looking for ...
Day In a Page
The price of pacifism
Jason Isaacs: Groupies, theatre bores and James Bond
Sealand: 'Micronation' or illegal fortress?
Legend of James Hunt has set Hollywood hearts racing
Macklemore: 'I don't have moderation'







Comments