Government blocks payments to Commonwealth Games firms under probe

Payments to four foreign consultants and a Mumbai-based firm who had been contracted for the Commonwealth Games (CWG) have been blocked.

The five firms include two Australian, one Swiss, one British and an Indian firm. Sources told DNA that, besides the circumstances of the award of contracts, investigating agencies will also focus on the tax liabilities of firms hired for the CWG.

The Indian firm, Prime Focus,  is reported to have provided services for the mammoth aerostat project. According to available information, the firm was responsible for the display that appeared on the aerostat. Though the firm is believed to have received most of its dues, an additional demand of Rs60 lakh has been blocked.

Amongst the four others is the Australian firm Spectak, which had bagged a Rs6 crore contract for the opening ceremony. The last installment of around Rs1 crore and performance guarantee deposit of Rs60 lakh are reported to have been blocked.

Pending payments of around Rs3 crore that were to be released to the Switzerland-based Event Knowledge Services, have also been blocked. Also, payment of Rs2 crore to the Australia-based Howard and Sons, which had provided the pyrotechnics for the opening and closing ceremonies, has also been blocked.