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CAG's CWG Audit Report - Executive Summary (2011)

CAG's CWG Audit Report - Executive Summary (2011)

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Published by The Canary Trap
The Comptroller and Auditor General's (CAG) report on the 2010 Commonwealth Games has indicted the Prime Minister's Office (PMO) for the appointment of Suresh Kalmadi as the Organising Committee Chief. The report also indicts Delhi chief minister Sheila Dikshit for irregularities in the preparation of the Games.
The Comptroller and Auditor General's (CAG) report on the 2010 Commonwealth Games has indicted the Prime Minister's Office (PMO) for the appointment of Suresh Kalmadi as the Organising Committee Chief. The report also indicts Delhi chief minister Sheila Dikshit for irregularities in the preparation of the Games.

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Published by: The Canary Trap on Aug 05, 2011
Copyright:Public Domain

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10/30/2013

 
ExecutiveSummary
Background
TheXIXCommonwealthGames(CWG-2010)weresuccessfullyhostedinDelhifrom3to14October201
O.
TheseGamesrepresentedthelargestevermulti-sporteventheldinIndia.4336athletesand2115officialsrepresenting71CommonwealthGamesAssociations(CGAs)participatedincompetitiveeventsin17sportsdisciplines,besideseventsin4parasportsdisciplines.WhileAustraliawasthemostsuccessfulteamatCWG-2010,IndiagaveitsbesteverperformanceintheCommonwealthGamesbysecuringsecondpositioninthemedaltallywith38gold,27silver,and36bronzemedals.TherighttohostCWG-2010wasawardedinNovember2003toDelhionthebasisoftheMay2003bidoftheIndianOlympicAssociation(lOA),andtheguaranteeofGovernmentofIndia(Gol),inconjunctionwiththeGovernmentoftheNationalCapitalTerritoryofDelhi(GNCTD)tobearthefinancialliabilityforhostingtheGames,includingunderwritinganyshortfallbetweenrevenuesandexpenditure.InJuly2009,wepresentedaStudyReporttotheGovernmentofIndiaonpreparednessforCWG-201
O.
ThisStudyReportwasintendedtoprovideanaidtotheExecutiveinmonitoringandbenchmarkingprogresstowardspreparingtheinfrastructureandstagingtheGames,andmakingmid-coursecorrections.ThecurrentauditofCWG-2010wascomprehensiveinnature,andbuildsonthefindingsandrecommendationsofourStudyReportonpreparednessfortheGames.ItcoverstheperiodfromMay2003(whenthebidwassubmitted)toDecember2010aftertheconclusionoftheGames,aswellasamultiplicityofactivities-notjustthehostingoftheGamesperse,butalsothedevelopmentofsportingvenues,theGamesVillage,cityinfrastructureprojectsandotherassociated/supportingactivities-executedbyadiversesetofagencies.WeconductedourfieldworkbetweenAugustandDecember2010,heldentryandexitconferenceswiththeconcernedagencies,andalsoissueddetailedStatementsofFacts(SOFs)totheagencies,seekingtheirresponsesandcomments,whichhavebeenappropriatelyconsideredinthisreport.Ourmainfindingsaresummarisedinthefollowingparagraphs.Detailsareavailableintheactivity-specificchapters.
PerformanceAuditReporton
XIXCommonwealthGames(CWG-2010)
I
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EXECUTIVESUMMARY
Governance
ThecommitmentofGol,inconjunctionwithGNCTD,inSeptember2003tobecomepartiestotheHostCityContract(HCC)andundertakingtobearthefinancialliabilityforhostingoftheGames,includingunderwritinganyshortfallbetweenrevenueandexpenditure,wascriticaltothesuccessofthelOAbidforDelhitohostCWG-2010.ThecompetingbidfromHamilton,CanadadidnotinvolvedeficitguaranteesfromtheCanadianFederalandProvincialGovernments,nordidtheyagreetobepartiestotheHCC.InthecaseofIndiathus,theGamesbecamethepropertyofthenation,ratherthanmerelythatofthelOA.Thiswas,however,inadequatelyreflectedinthesubsequentconstitutionoftheOrganisingCommittee(OC).Inouropinion,theuniquechallengeofmanagingandmonitoringtheactivitiesofmultipleagenciesfordeliveringtheGamesProjectshouldhavebeenmetbyentrustingitsstewardshiptoasinglepointofauthorityandaccountability,withadequatemandatetoensurealldeliverablesintime,tocost,andtospecifiedqualitystandards.Further,inviewoftheGovernmentguaranteeformeetingthecostoftheGames,itwasessentialforsuchstewardshiptobefullyunderGovernmentcontrol.However,thismodelofmanagementorfinancialcontrolwasnotfollowedfortheGamesProject.AlthoughthebiddocumentofMay2003envisagedtheOCasa
Government-ownedregisteredsociety,
withtheChairmanoftheOCExecutiveBoard(EB)beingagovernmentappointee,andthelOAPresidentbeingonlytheEBVice-Chairman,theOCwasultimatelysetupinFebruary2005asa
non-Governmentregisteredsociety,
withthelOAPresident,ShriSureshKalmadiastheChairmanoftheOCEB.Thischangewasorchestratedthroughasequenceofevents,commencingwithadocumenttitledasan"updatedbid"ofDecember2003(whichhadnolegalsanctityorrelevance),indicatingachangedstructure.This"updatedbid"datedDecember2003surfacedonlyinSeptember2004,viz.16monthsafterthelOAmadeitsbidand10monthsafterthatbidhadalreadybeendeclaredsuccessful!DespiteseriousobjectionsfromtheerstwhileMinister,YAS,lateShriSunilDutt,ShriKalmadiwasappointedastheOCChairman,basedonaPMOrecommendationofDecember2004.ThisdecisionfacilitatedtheconversionoftheoriginallyenvisagedGovernment-ownedOCintoabodyoutsideGovernmentalcontrol,withoutcommensurateaccountabilitytoGovernmentandconcomitantcontrolstoensureproprietyandtransparency(despitefullfinancialguaranteeandfundingfromGovernment).Attemptsin2007byShriManiShankarAiyar,Minister,YASandlateShriSKArora,Secretary,MinistryofYouthAffairsandSports(MYAS)withthePMO,theGroupofMinisters(GoM)andtheCabinetSecretariat,highlightingtheineffectivepositionofMYASin
6
I
PerformanceAuditReporton
XIXCommonwealthGames(CWG-2010)
 
EXECUTIVESUMMARY
exercisingcontrolovertheOC,metwithstrongresistancefromtheChairman,OC,andwerehencerenderedunfruitful.Intheabsenceofasinglepointofauthorityandaccountabilityandthelackofacleargovernancestructure,amultiplicityofco-ordinationcommitteeswerecreated,disbanded,andreconstitutedatdifferentpointsoftime.Thisapproachwasnotmethodical,consistentandeffective,andalsoledtocompletediffusionofaccountability.ThiswasunlikethestructurefortheMelbourneCWG-2006,wheretheVictorianGovernmentoversawtheplanninganddeliveryoftheGamesthroughaspeciallyformedCabinetCommittee.TheMinisterforCommonwealthGameswasspecificallyempoweredandmaderesponsibleundertheCommonwealthGamesArrangementsAct2001.AlthoughthereweresomechangesinthegovernancestructureoftheOCfromOctober2009onwards,theseactionswerelargelyinthenatureofemergencyfire-fightingmeasures.Possibly,theonlyeffectivestepstakenwerearoundAugust2010whicheventuallyensuredtheactualconductoftheGames.EarlyanddecisiveactiononthegovernancestructurefortheGamesofthekindwitnessedinAugust2010,withasinglepointofauthorityandaccountability,couldhavemadetheGamesdeliveryprocesslesspainful,morestreamlinedandaccountable.
(Chapter4)
Planning
Therewasaseven-yearwindowfromtheawardofCWG-2010toDelhiinNovember2003toitshostinginOctober2010,whichwasnotappropriatelyutilised.ThetimewindowfromNovember2003tomid-2006,whichcouldhavebeeneffectivelyusedforplanning,clearancesandapprovals,waswasted.TheOCitselfwasregisteredonlyinFebruary2005,whileEKSwasappointedbytheOCastheconsultantforpreparationofvenuebriefsandsiteplansonlyinJuly2006.Thisledtocascadingdelaysinallsubsequentactivities,sincethereturnbriefs,conceptdesignsanddetaileddesignsanddrawingsforvenuescouldbepreparedonlythereafter.Evenafterthat,specificationsanddesignsforvenuescontinuedtoberevisedbytheOCandInternationalSportingFederationstilllatestages.OverallplanningfortheGames,includingtheGeneralOrganisationPlan,theGamesMasterSchedule,andtheoperationalplansfordifferentFunctionalAreas,wasalsosubstantiallydelayed.Sowasthedetailedplanningforstate-of-theartcityinfrastructureintimeforCWG-201
O.
(Chapter5)PerformanceAuditReportonXIXCommonwealthGames(CWG-2010)
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