THIRUVANANTHAPURAM: The highly publicised but never-materialised Kerala visit by Argentine superstar Lionel Messi and team is back in focus.
With the report submitted by N Prasanth, the special secretary (sports), to Chief Minister V D Satheesan suggesting the possibility of money laundering and potential violation of the Foreign Exchange Management Act (FEMA) surrounding the visit and recommending an ED probe, the state is set to go for a high-level investigation.
“The government is studying the report,” said a source in the CMO. “Action will be taken as per the set of its recommendations. A call on possibilities like the report being placed before the cabinet, or a probe by a special investigation team will be taken in the coming days.” “The report suggests the private company got clearance for foreign remittance equivalent to $15 million through a letter sent by the state government to the Centre. The possibility of money laundering cannot be ruled out,” a senior government official told the TNIE.
The report, which termed the entire episode a “private event” portrayed as a government-backed international event for the commercial advantage of Reporter Broadcasting Company (RBC), the sponsor, also found a gap of Rs 128 crore between the total estimate of Rs 210 crore and expected revenue of Rs 82 crore. While former sports minister V Abdurahiman rejected the charges, his successor O J Janeesh said he could come on radar as all communications went through him as per the report.
Messi visit: Govt did not incur any financial liability, says Abdurahiman
“We cannot say the former minister and the sponsor are equally responsible, as the minister’s is a constitutional position. Financial discrepancy is a major concern in the report. The sports department has done everything it could,” Janeesh told reporters in Delhi.
The report said RBC was appointed by the then government without an open process, valuation of commercial rights, verification of its financial capacity and source of funds. It said sports department officials had minimal to no say in the proceedings, as all major decisions were taken by the then minister and his private secretary.
The report also fired a salvo at retired bureaucrat A Jayathilak, accusing the former chief secretary of failing to comply with state rules on crucial issues like these. “Retirement does not extinguish liability for misconduct committed while in service,” said the report.
Meanwhile, rejecting the report’s findings, Abdurahiman maintained that the agreement to conduct the match was signed between the AFA and the sponsor and did not impose any financial liability on the government, he said in a statement.
The effort to bring the 2022 world champions was initiated after obtaining the approval of the sports and finance ministries, while the sponsor secured the RBI’s nod to make the payment to AFA (Argentine Football Association) through a public sector bank, said Abdurahiman, who termed the allegation that the sports department was unaware of the arrangements a “blatant lie”.
He said the Argentina team expressed willingness to play a friendly match after an invitation from the state government. Two institutions expressed interest in sponsoring the match, but after the first failed to meet conditions, RBC, which then expressed interest, was appointed sponsor, he said.
Abdurahiman also said AFA had officially announced that the team would be coming to Kerala, including through its social media platforms.
Major findings
No final deal received from AFA, FIFA or AIFF
Letter sent from state to Centre stating Argentina squad would visit Kerala
Clearance from finance & law depts, cabinet nod, proper DPR and Centre’s NOC not availed
Dept officials forced to act on basis of written notes or orders of then minister or his private secretary
Recommendations
Vigilance or SIT probe into rule violations
Probe by ED or Central Financial Investigating Agencies into foreign remittance and anti-money laundering aspects