Thiruvananthapuram (Keralam) [India], August 11 (ANI): Keralam’s Congress-led UDF government’s Sports Special Secretary N Prashanth has flagged serious procedural, financial and administrative irregularities in the previous Left Democratic Front (LDF) Government’s efforts to bring the 2021 FIFA World Cup-winning Argentina team and its legendary captain Lionel Messi, for a ‘friendly exhibition’ match at Jawaharlal Nehru Stadium in Kochi in 2025.
In a report submitted to the Keralam government, Prashanth recommended a detailed departmental inquiry against those responsible and called for the files to be referred to competent investigating agencies to examine alleged financial, regulatory and other violations.
The report questioned the manner in which an Argentine Football Association (AFA) document was treated as confirmation of the proposed event. According to the report, the document was neither a formal commitment addressed to the Kerala government nor a legally binding assurance, but merely a brochure or commercial requirements sheet.
It further noted that despite the absence of a final commitment from AFA, an agreement guaranteeing the participation of prominent players, including Messi, or official FIFA/AIFF approval, the Union government was informed that Argentina’s official World Cup squad would visit Kerala.
The report also flagged the failure to complete mandatory consultations with the Finance and Law Departments, obtain a Detailed Project Report and Government of India NOC, and secure the necessary Cabinet-level policy decision before advancing the project.
The proposed event was assessed to involve an expenditure of around Rs 210 crore, against anticipated revenue of Rs 82 crore, leaving a projected financial gap of Rs 128 crore. The AFA match fee alone was estimated at Rs 198 crore, the report said.
It concluded that proceeding with a private sponsorship model without proper financial closure bypassed the scrutiny of the Finance Department and was contrary to the Kerala Financial Code.
The report also questioned the appointment of Reporter Broadcasting Corporation (RBC) as the private company associated with the project, alleging that no transparent process was followed to assess its financial capacity, source of funds, commercial rights or safeguards for protecting government revenue.
It alleged that the government machinery and public resources were used to provide “substantial unwarranted market credibility and commercial advantage” to a private company, while basic departmental obligations, including assistance to sportspersons and award amounts exceeding Rs 11 crore, remained unpaid.
The report pointed to a “serious chronological inconsistency” concerning the agreements. It said a subsequent addendum showed that RBC and AFA had executed a final agreement on December 20, 2024, whereas the government formally approved the sponsorship only on December 24 and permitted execution of the agreement on January 7, 2025.
According to the report, attempts to provide official protection to transactions entered into by private parties before government approval could amount to improper ex post facto validation and raise constitutional concerns under Article 166.
The report also raised concerns over the proposed USD 15 million foreign remittance through a third-party intermediary, TourProdEnter LLC. It recommended examination of the transaction, including the source and money trail, FEMA compliance, beneficial ownership and the possibility of recovery or refund, by the Enforcement Directorate or other competent central agencies.
The Income Tax Department and CBDT were also recommended to examine TDS liabilities, Forms 15CA/15CB, tax treatment, DTAA benefits and the tax liabilities arising from the transaction.
The report also questioned the manner in which the Jawaharlal Nehru International Stadium at Kaloor, Kochi, was made available to the private sponsor for construction-related works.
It said this was done without final confirmation of the match, official FIFA/AIFF registration, prior Law and Finance Department approval, insurance or bank guarantees to protect the public asset.
The report further noted that waivers of security deposit, rent, other charges and taxes amounting to more than Rs 5 crore, as recorded in the file, had been granted in favour of RBC.
It described the statement in the stadium’s standard operating procedure that normal government procedures were “impracticable” as evidence of an attempt to circumvent established rules.
The Special Secretary recommended a detailed inquiry into the decisions taken during the project and fixing responsibility for the alleged lapses.
The report said substantive decisions appeared to have been taken through meetings convened by the then Chief Minister, the then Sports Minister and the Chief Secretary, while some decisions appeared to have been communicated through notes from the Private Secretary of the then Sports Minister.
It also questioned the role of the Chief Secretary, stating that, under the Kerala Secretariat Office Manual, the Chief Secretary has superintending control over the entire Secretariat and has a responsibility to ensure compliance with the Rules of Business.
The report said the issue should form a principal charge in the proposed departmental inquiry and responsibility should be fixed accordingly.
The report recommended that the Vigilance and Anti-Corruption Bureau (VACB) or a Special Vigilance Investigation Team examine alleged rule violations, the selection of the private operator, ministerial-level communications, international agreements, alleged government benefits and tax waivers to RBC, and the handing over and structural alteration of the stadium.
It also recommended examination by the ED or other competent central agencies of the foreign-remittance trail, while the corporate structure and beneficial ownership of RBC, GoatAd/GoatAd Global LLP and connected entities should be examined by the Registrar of Companies, Ministry of Corporate Affairs and, if necessary, the Serious Fraud Investigation Office (SFIO).
The report said retirement from government service does not automatically extinguish liability for misconduct committed while in service and referred to provisions allowing proceedings against retired All India Service officers in cases involving grave misconduct, negligence or pecuniary loss to the government.
Concluding its findings, the report recommended urgent departmental inquiries to fix responsibility and transfer of the relevant files to competent investigative agencies to examine alleged undue favour, violations of financial and procurement norms, foreign-money transfers and other possible criminal, financial and regulatory violations. (ANI)
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