CWG organisers paid UK firm without any contract

Last Updated 31 July 2010, 13:22 IST

A M Films, the firm which has received lakhs of pounds for extending its "services" for the Queen's Baton Relay's London leg, however, denied allegations that the deal with the CWG Organising Committee was questionable.

"No illegal or irregular financial transactions have taken place between AM Films and the Commonwealth Games organising committee," the company's owner Ashish Patel said.
"The money was transferred in lieu of services obtained during the Queen's Baton Relay function in London in October last year and we have all the details of the deal which I can produce if needed," he added.

Asked whether the company had a contract to show, Patel said, "No, we didn't have the contract in place at that time. Everything was happening so fast so we couldn't get the contract then. Now the revenue wants to know where is the contract."

"I'm waiting for his lawyers. He is away and will return on August 9. I will take a decision after speaking with him. If needed I can even come down to India," he told 'NDTV'.
The entire deal came to light when the OC asked for a VAT refund of 14,000 pounds in March this year for the payments made to the British company.

Allegations of a substantial sum of money being transferred to AM Films from the Games Organising Committee (OC) emerged yesterday with the British Government also raising doubts about the deal. Reports claimed that over 4.50 lakh pounds were transferred through a British bank to A M Films, which was also receiving 25,000 pounds a month.
However, Patel denied all such reports and said he has so far received 2,47,000 pounds from the OC. Patel claimed that the OC still owes his company 1,23,000 pounds.

"No money has come to my account without paper work and I can show you. Whatever money has come we have invoices against that. No money came into my account apart from the 2,47,000 pounds.

"There is no transaction which came for 25,000 pounds. I have given all invoices to the OC, against which they paid me. One invoice of 1,23,000 is still outstanding, which we have sent but they have not sorted out the payment as yet," he said.

Reports quoted a letter of the British Revenue and Customs Department to the Indian High Commission stating that there was no written contract between the CWG and AM Films and that no tendering procedure was followed.

The OC is reported to have made a payment of nearly 2.5 lakh pounds for video equipment purchased while A M Films has claimed that it provided services of car hire, makeshift toilets, barriers and electricity.

Indian High Commission sources said the information provided by the UK authorities had been forwarded to the Sports Ministry for follow up action.

In Delhi, Cabinet Secretary K M Chandrashekhar conveyed concern over the charges as well as delay in preparations to the Organising Committee of the sporting event in October this year.

(Published 31 July 2010, 09:48 IST)

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