NTPC says no donation if any agency gets cut

NEW DELHI: Like the Railways, NTPC on Wednesday sought a similar assurance from the Suresh Kalmadi-led Games OC that no part of its contribution should go as service charge or commission to any agency. The NTPC had pledged a sponsorship donation of Rs 50 crore, but this money may not be paid if the OC doesn’t meet its demand.

Apart from the Railways and NTPC, Central Bank and Air India have also promised to make donations of Rs 50 crore each towards the Games. It’s possible that they, too, might follow suit and refuse the donation unless they get a similar assurances from the OC.

What’s queering the pitch for the OC is its contractual obligation with SMAM in which it has signed off on a commission ranging from 15 to 23%. SMAM on Wednesday ‘‘ offered’ ’ to not take any commission on PSU donations, but has insisted on a ‘‘ service fee’’.

Now, this fee may not be acceptable to the PSUs. Sources said the diktat from Railways came after the OC refused to reveal who the beneficiaries were in the Singapore subsidiary of the Melbourne-based SMAM. “We have raised a query with the OC whether any part of our contribution would go to SMAM,” said a senior Railway official, stating that it is important to maintain transparency and clarity given the reputation of agencies involved with CWG.

The SMAM has also claimed that World Sport Group (WSG) and SMAM are two independent and completely separate companies. “WSG does not have any contract directly or indirectly with the OC nor has it had any financial dealings with the OC or government bodies involved with the CWG,” a statement said.