Aus to sue CWG organisers over unpaid bills


CNN-IBN, 20-01-2011 08:04:24


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New Delhi: In yet another embarrassment for India, Australia has decided to sue Commonwealth Games organisers over the unpaid bills.Australia has decided to take strict action against Suresh Kalmadi and the Commonwealth Games Organising Committee.The Australian Commonwealth Games Association has said that the Commonwealth Games still owes "a six-figure sum" which was due two months ago.

 

CWG

 

Perry Crosswhite, the CEO of the Australian Commonwealth Games Association has said that his organisation is one among the 30 or 40 bodies whom the Delhi Commonwealth Games organisers owe money.


"Commonwealth Games Organising Committee owns money for the travel subsidy that was promised to us and that was due on November 15. We are entitled to the last 30 per cent of our travel subsidy which is around 200,000 Australian dollars. The Organising Committee contracted a lot of Australian companies to do work on various things such as the opening ceremony, the fireworks display and the sound systems. I don’t know the level, I saw newspaper reports this morning that there were millions of dollars owed to Australian companies. I am only quoting that. My own body will not take legal action because I am sure that the Commonwealth games Federation will get us paid but the companies are taking group action through one of Australia’s major legal firms Slater and Gordon," said Crosswhite.


Sydney Olympics maestro Ric Birch, who was creative director for the Delhi ceremonies, is likely to launch a multi-million dollar class action against Commonwealth Games organisers for substantial unpaid bills.


Most of the Australian companies, who claim they are still be paid, were key players in the opening and closing ceremonies.


Howard & Sons said it was owed $300,000 in unpaid bills, but up to $900,000 if the company’s unique pyrotechnics firing equipment held-up in Delhi is taken into account.


Global major event sound company Norwest Productions said it was now owed $1000000, including $160000 a week for the past six weeks, for equipment needed elsewhere by the start of December but held up in Delhi. An Australian firm that provided Commonwealth Games media services is yet to be paid $600,000.


All the companies claim they still have substantial parts of their $1 million-plus contracts left unpaid, three months after the closing ceremony.


Two other Australian companies said they were also owed a total of about $1.6 million by organisers.


The Australian government has already raised the issue with External Affairs Minister SM Krishna.


Australian Foreign Minister Kevin Rudd took up the issue with Krishna during their bilateral on Thursday. Krishna assured the Australian government that he would take up the matter of non-payment of dues to companies for Commonwealth Games-related work.


"It has been brought to my notice and I would go back to India and take it up with the Ministry of Sports. I promise to deal with the issue on my return to New Delhi," said Krishna.

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