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NEW DELHI: Within two days of saying "wrongdoers" in the Commonwealth Games scams will not escape, Prime Minister Manmohan Singh ordered a CBI probe into alleged graft in the Rs 214 crore Games telecast deal.

In the dock are suspended Prasar Bharati head BS Lalli and director general of Doordarshan Aruna Sharma, with the first report of the Shunglu committee on Commonwealth Games irregularities recommendation for action against both officials now sent to the CBI. This follows comments by the cabinet secretariat.

In an official statement, the Prime Minister’s Office said Sharma would revert to her parent cadre while the information and broadcasting ministry would seek explanations from Lalli and Sharma on "allegations" made against them and recommend action within two weeks.

The prosecution of Lalli and Sharma seems almost certain as the Shunglu committee’s finding that an Indian sub-contractor made around Rs 70 crore profit from a deal between Prasar Bharati and UK firm SIS Live is likely to be echoed by the government auditor as well. The sub-contract between SIS Live and Zoom Communications was signed the very day the UK firm sealed the deal with Prasar Bharati.

Sharma completed her tenure on Friday and her return to Madhya Pradesh cadre was on the cards. Since Lalli’s post as chief executive officer of Prasar Bharati is covered by a statute, a reference has already been made to President Pratibha Patil on the basis of a previous adverse Central Vigilance Committee report.
The I&B ministry will also review payments made to SIS Live and consider measures to recover funds in case of "over payment." The British high commission has already protested a decision to withhold the last tranche of payment due to the firm.

But the Shunglu committee estimates the telecast cost just about 50% of the Rs 214 crore contract.

In what might lead to a review and changes in the Prasar Bharati Act, the Prime Minsiter’s Office said the relationship between the government, CEO and Board of Prasar Bharati needed to be considered afresh.

Also, "issues regarding the governance structure and the oversight mechanism" will be considered by a group of ministers headed by finance minister Pranab Mukherjee.

The government does not want to be in a situation where an official like Lalli is protected by the statute and cannot be checked. The financial and other powers of Prasar Bharati are already subject to I&B scrutiny and these will be acted on.

The group of ministers is being asked to expedite its work so that "corrective administrative and legislative measures" are put in place.