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Friday, August 5, 2011

2G SPECTRUM SCAM: Broadcast contract flawed - CAG!

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August 5, 2011 / By Namrata Biji Ahuja, Correspondent, New Delhi.

The CAG report on the Commonwealth Games, expected to be tabled in Parliament on Friday, terms as “flawed” the broadcasting services contract for CWG awarded by Prasar Bharati to SIS Live.

It charged PB with favouring SIS Live at all stages. “Although Doordarshan was indicated as the host broadcaster in the May 2003 bid, it was formally notified by the CWG Organising Committee only in March 2007, and the host broadcaster agreement between the OC and PB was signed in May 2009,” it said. The CAG said the award of the broadcasting services contract by PB to SIS Live was flawed on several counts. “Only one bidder, SIS Live, was qualified on technical grounds, and the contract was awarded on a single financial bid, without any competition,” it said. These matters are currently being investigated by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act and FEMA. The CAG says that “contrary to the intent of the contract with PB, SIS Live went ahead and outsourced almost the entire contract on the same day to Zoom Communications, which would have been ineligible for bidding.” While PB’s contract with SIS Live was for `246 crore, the sub-contracts between SIS Live and Zoom were for only `177.30 crore, which would also factor in Zoom’s profit margin. Clearly, there was a substantial loss to PB and the government,” it said.

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