NEW DELHI, (Reuters) – Two Indian state-run firms have withdrawn their sponsorship of the Delhi Commonwealth Games due to “negative publicity” of the event stemming from allegations of graft and mismanagement.
On a bad day for organisers, Australian swimming great Dawn Fraser also advised her compatriots to consider boycotting the event as she feared the security situation in the country could turn the Games into “another Munich”.
The Games, through which India hopes to showcase its growing global clout, is relying on state-run firms for sponsorship as private companies have largely stayed away.
However, country’s biggest power producer, NTPC Ltd <NTPC.BO>, has decided to scrap its 500 million rupees ($11 million) sponsorship deal and is seeking an audit of the 200 million rupees it has already paid.
“Our board has decided not to go ahead with the sponsorship because of the negative publicity,” NTPC Chairman and Managing Director R. S. Sharma told Reuters on Thursday.
State-run transmission utility Power Grid Corp of India <PGRD.BO> has also decided to back out of its 100 million rupees commitment to the Games, its Chairman S. K. Chaturvedi said.
A spokesman for the Games organising committee was not immediately available for comment.
Struggling to get the venues ready before athletes start arriving next month, the Oct. 3-14 Games is also facing serious corruption charges, which has led to the suspension of three senior officials, while the treasurer has quit following a contract row.
The event, the cost of which has risen more than 17.5 times over its initial estimates, lost its merchandising partner last week when the Indian company pulled out citing an inordinate delay in launching the products.
A government anti-corruption agency has identified 16 Games projects where large-scale irregularities are suspected while the state audit agency questioned the process followed in engaging some of the consultants.
