VIBHA VERMA
vibha@herald-goa.com
PANJIM: Differences between Mumbai-based event management company Percept and Goa government are escalating. The latest salvo fired by the company is a legal notice over payments due for services rendered during the Lusofonia Games held in 2014.
The firm’s legal notice on the State is for unpaid dues amounting to nearly Rs 3.50 crore towards events managed during the multinational sports event.
Government sources told Herald that Percept had won the tender on account of being the lowest bidder of Rs 28 crore, in 2012. “The government was desirous of hosting the Lusofonia Games in Goa from January 18-29, 2014. Based on certain discussions, negotiations and assurances, our client agreed to provide ceremony management services to the Goa government and submitted its proposal. By a letter on September 24, 2013, the representative of Goa government communicated to our client that services had been approved to be engaged by Lusofonia Games Organising Committee to execute works and render necessary services for the ceremonies to be conducted as part of the Games,” an extract of the notice to the Chief Minister states.
It has also come to the fore that the Committee allegedly negotiated this cost and reduced it to approximately Rs 22 crore, including tax. The firm thereafter billed the State Rs 22 crore for the work done as per the tender and the Committee’s directive. The account was subsequently put on CAG audit in 2014 and a clearance was given only after a year.
The entire amount was to be paid in six instalments. However, the final instalment has not been paid to the firm till date. “The principal amount of over Rs 2.02 crore has not been paid and with interest, the amount has escalated to around Rs 3.71 crore,” said the source.
After failing to get any response to several representations made to the government and the departments since then, Percept has now sent a legal notice asking the government to settle the dispute within five days failing which it will initiate arbitration proceedings.
“Percept did everything from writing letters, calling, meeting all those in the organising committee, Sports Authority of Goa, Sports Ministry and Chief Ministers Office and finally was forced to send a legal notice for its dues,” a company spokesperson informed.
Sports Authority of Goa Executive Director V M Prabhudesai, when contacted, confirmed having received the legal notice but declined to speak further on the issue.
