Maken gives CWG OC a ten-day ultimatum to clear debts

OC, on the other hand defends delays in payments

PTI | January 20, 2011



With the payment dispute between Australian firms and CWG organisers threatening to snowball into a major row, the Sports Ministry today issued a 10-day ultimatum to the organising commmittee to sort out payment issues.

But unfazed by the controversy and threat of a multi million dollar lawsuit, the beleaguered organisers sought to justify the delay, saying final payments are made only after complete reports from functional area heads are received and analysed.

New sports minister Ajay Maken directed government nominees in the organising committee to "thoroughly verify" the unpaid dues and ensure that the payments are made within ten days.

"I had a meeting with the sports secretary on this matter. I have directed the government nominees in organising committee to thoroughly verify the unpaid dues and make all the legitimate payments within ten days. It is a very important issue", Maken told a press conference here shortly after taking independent charge of the sports and youth affairs ministry.

Four of Australia's biggest event management firms plan to slap a multi-million-dollar lawsuit against commonwealth games organisers for the recovery of their dues.

Events organiser Ric Birch has commissioned law firm Slater and Gordon to draw up the multi-million dollar lawsuit that would involve at least four of Australia's biggest event firms - including his firm Spectak Productions and fireworks group Howard & Sons - against the Delhi games organisers.

Maken said the commonwealth games ended about three months back and he did not want problems to linger for so long.

"It has been three months that the Games are over and payments have not been done. I dont want the issue to linger on for ever. I dont want anyone to come and point fingers at us", he said.

"It is a very important issue and I want it to be resolved as quickly as possible. If there is more delay, more problems could crop up", he said.

Reacting to reports that events organiser Ric Birch has commissioned a law firm draw up a lawsuit against organisers, the OC said, "As much as 90 per cent of the contracted amount to Birch has already been released."

"There are issues pending on account of under-performance vis-a-vis contractual obligations, as raised by the Functional Area Head. Hence, the final installment has been held back and the party has been informed accordingly," OC chairman Suresh Kalmadi said in a statement.



 

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