This Article is From Oct 26, 2010

CWG: Were rules bent for broadcast rights deal?

CWG: Were rules bent for broadcast rights deal?
New Delhi: The controversy over the broadcast rights deal for the Commonwealth Games is getting larger.

The Information and Broadcasting Ministry has sent the files on the deal to the Central Vigilance Commission (CVC), which has been asked by the government to investigate the apparently-indefatigable corruption that marked pretty much every aspect of the Games.

The 246- crore broadcast rights deal was awarded to London-based company SIS Live, which set up an Indian entity for the Games.

CWG Broadcast Scam
  • Prasar Bharati: I&B Ministry cleared deal, contracts never changed
  • I&B Ministry: Only draft contract was cleared
  • I&B Ministry: Not kept in the loop on deviations from draft contract
Prasar Bharati's Defence
  • Prasar Bharati: Final draft sent to I&B Ministry
  • Prasar Bharati: Ministry authorised host broadcaster to go ahead after taking legal advice 
  • Prasar Bharati: Top legal authorities were consulted
The Vigilance Commission will audit the deal and determine whether proper procedure was followed in awarding it, as well as who might have benefitted if rules were not observed.

All dealings with SIS were handled by Prasar Bharati, which reports to the Information and Broadcasting Ministry, and governs Doordarshan and All India Radio.

The Prasar Bharati CEO, BS Lalli, told NDTV in an interview last week that the Information and Broadcasting Ministry had signed off on the deal with SIS.

However, the ministry says that it cleared only a draft contract, and that it was not told about modifications to the original contract- and it is in these changes that the controversy lies.

The amendments, reportedly insisted upon by SIS two weeks before the Games began on October 3, allegedly saw payments being changed so that SIS would get paid ahead of the schedule agreed upon originally.

There's also the fact that SIS sub-contracted its work to an Indian company named Zoom communications, whose office it shares in Delhi. The I&B ministry reportedly was unaware that Prasar Bharati had allowed SIS to outsource its work.

Income tax officials told NDTV last week that the broadcast rights deal is being investigated, that SIS' tax formalities were incomplete, and that there were discrepancies in tax and other documents. How SIS won the bid is also a matter of concern, they said, though they did not share further details on that front.
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