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CAG's CWG Audit Report - Chapter - 29 (2011)

CAG's CWG Audit Report - Chapter - 29 (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
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10/30/2013

 
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TelecommunicationsServicesforCWG-2010
MTNLwasappointedon"nominationbasis"inOctober2009forprovidingtelecommunicationsservicesforCWG-2010
1
onthepremisethatitwouldfollowallnormsandproceduresforpublicfinancialaccountability.However;
we
foundthattheprocessofawardingthetelecommunicationsservicescontractwasflawed.MTNLIwith
oc's
aqreement,pushedthroughavastlymoreexpensivetechnicalsolution(/pjMPLS)fortheBroadcastVideoNetworkandBroadcastAudioNetwork,whichhadnotbeentestedinpreviousGamesandwasnotacceptabletotheRightsHolderBroadcasters(RHBs)fromdifferentCommonwealthcountries.EventuallYIinadditiontoIPjMPLSIthetestedandexistingtechnicalsolution("point-to-pointdarkfibre")wasprovidedtomeettherequirementsofRHBs.EvenDoordarshanmadeuseofonlythedarkfibresolutionforitsvideobroadcastrequirements.Thissolutionwouldhavebeenvastlycheaper;withlesscosttothepublicexchequer.ThepremiseofthePSUfollowingpublicfinancialaccountabilitynorms(whichwasthebasisforobtainingGolapprovalforappointmentofMTNL)wasjettisoned,asthetechnicalrequirementswerealteredwithoutadequatejustificationbyMTNLtoleaveonlyonetechnicallyqualifiedbidder;theHCLjCiscoteam;therewas
l
thus,nofinancialcompetition.EssentiallYIMTNLactedasaconduitforplacementofacontract.onaback-to-bockbasis,inanon-transparentmanner.InAugust2009
1
Airtelmadeanoffertothe
OC
forprovidingtelecommunicationservicesforCWG-201
o.
ShriSureshKalmadiandhisassociatesinthe
OC
continuedtonegotiatetillJanuary2010withAlrtel,whoselastofferwastoprovidesuchservicesatacostofRs.160crore(excludingtaxes},offsetbysponsorshipofRs100crore.Forunexplainedreasons,Airtel'soffer;whichwasconsiderablybetterthanthatofMTNLIwasnotbroughttothenoticeoftheGol.TheestimatesfortelecommunicationsservicesprovidedbyMTNLatdifferentpointsoftimewereunreliableandlackedadequatesupport,withthefinalinfrastructurecostofRs.270.70crore(excludingtaxes)approvedbytheGolbeingmorethaneighttimestheestimatesofapproximatelyRs.
33
croreforMelbourneCWG-2006.Further;thecontractawardedbyMTNLtotheHCLjCiscoteamwasforRs.
387.19
crore(excludingtaxes],whichwas
12
timestheestimatedcostforsimilarservicesinMelbourneCWG-2006.ClearlYItherewasasubstantiallosstotheGolonaccountofthisdecision.However;
we
areunabletoquantifythislossonthebasisofavailablerecords.
PerformanceAuditReportonXIXCommonwealthGames(CWG-2010)
1513
 
Chapter29-TelecommunicationsServicesforCWG-2010
MTNLdidnotproviderealisticanddetailedbusinessplansorstrategiesregardingthepost-CWGmarketpotentialforthehighspeedIP/MPLSsolutionobtainedatconsiderablecosttotheGol(exceptforareferenceinthetenderdocumentstotherequirementofnetworkcapacitytohandle1
1
00
1
000customerseachinDelhiandMumbai).This,further;confirmstheredundantnatureofthisexpensivetechnicalsolution.
29.1Introduction
TV(HDTV)broadcastvideosignals,andbroadcastaudiosignalsbetweendifferentlocations-competitionandothervenues,theInternationalBroadcastingCentre(IBC),theMainPressCentre(MPC)(locatedatITPO),andmastercontrolfacilities.ThescopeoftelecommunicationsservicesforCWG-2010issummarisedbelow:ForthesuccessfulconductanddeliveryoftheGames,itwasnecessarytoputinplacerobust,effectiveandfailprooftelecommunicationsservicescateringtotherequirementsforbulktransmissionofgamesdata,securitydata,HighDefinition
Figure
29.1-
TelecommunicationsServices[orCWG-2010
5141
PerformanceAuditReportonXIXCommonwealthGames(CWG-2010)
 
Chapter29-TelecommunicationsServicesforCWG-2010
MTNLwasformallyappointedinOctober2009byMYASastheTelecommunicationsServiceProviderforCWG-2010.October2009wastheculminationofanextendedengagementprocessbetweentheOCandMTNLatthehighestlevels,beginningMarch2009asisevidencedbythechronologyofeventsgivenbelow:
29.2SelectionofMTNL
WefoundthattheformalappointmentofMTNLasthetelecompartnerbyMYASin
Table
29.1-
Chronologyojeventsleading
to
nominationojMTNL
DateEvents/Activities
14March2009ComprehensivepresentationmadebytheMTNLTechnologyteamtotheOC,whichindicatedthecostoflayingthetelecommunicationsolutionasRs450crore(basedmainlyonratesofCiscoandHCLequipment).26May2009MeetingheldbetweentheMTNLteamheadedbyShriRSPSinha,thenCMDMTNLandaseniormanagementteamoftheOCheadedbyShriAKMattoo,Treasurer,ShriVKGautam,COOandothermembersoftheOCTechnologyFunctionalArea6June2009LetterofintentissuedbyCOO,OCengagingMTNLastheTelecommunicationsServiceProviderforCWG-2010,subjecttoothertermsandconditionstobefinalisedthroughdetailednegotiations.June2009DiscussionsheldbetweentheOC
1
andMTNL'stechnologyexpertcommittee"tofinalisetheScopeofWork(SOW).30July2009SOWfinalisedbytheOCfortelecommunicationsinfrastructure.4August2009GroupofOfficers(GOO)3constitutedbyCabinetSecretariattoevaluateandfinalizetheSOWwithrespecttofinancialandtechnicalproposalsmootedbyMTNL.9August2009GOOapprovedproposalatanestimatedcostofRs.270.70crore(againsttheproposedestimateofRs.343.11crore)fortelecommunicationsinfrastructuretobefundedonawet-leasebasis",withGolfinancialsupportofRs.165croreplusdutiesandtaxesofRs.17croretobeprovidedtoMTNL.October2009MTNLnominatedasTelecommunicationsServiceProviderforCWG-2010byGolNovember2009ProposalofGOOendorsedbytheEFCandapprovedbytheGol.
ShriV.K.Gautam,
coo
andothermembersoftheTechnologyFunctionalArea.GM{CPSL},Manager{CPSL},andDGM{BB}.Secretary,Sports;Addl.Secretary,MI&B;JointSecretary,MoF;andDOG,DOTThefacilitywouldbeavailableforuseduringCWG-2010andwouldthenbehandedover
to
MTNLforfutureuse.
60
percentofthecapitalcostwouldbebornebytheGalandreimbursed
to
MTNL.
PerformanceAuditReportonXIXCommonwealthGames(CWG-2010)
1515

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