Messi event row: Second report flags more financial irregularities, SIT to investigate

THIRUVANANTHAPURAM: The Special Investigation Team (SIT) will also investigate the findings in the Sports Department’s second report, which points to further financial irregularities in connection with the plan to bring football superstar Lionel Messi to Kerala. The second report has also been handed over to the Home Department. According to the second report prepared by Sports Department Special Secretary N. Prasanth, the previous government had given the sponsoring company, Reporter Broadcasting Company, all rights to the event, including its revenue and profits, free of cost.

The report also points to a possible violation of foreign exchange regulations after the sponsor sought permission to send money abroad in the name of making a payment to the Argentina Football Association. The Kaloor Jawaharlal Nehru Stadium was also reportedly handed over to the sponsor with a financial concession of Rs 5 crore.

A meeting chaired by the Chief Secretary decided to make the services of two IAS officers fully available for the project, even though no agreement had been signed with the government. The report also alleges that the Sports Kerala Foundation prepared the detailed project report (DPR) for the matches in a way that allowed the sponsor to make huge profits.

Revenue allegedly understated

The second report highlights several concerns over how the event’s potential revenue was presented in the DPR:

1. Only ticket sales and broadcasting were listed as sources of revenue. Other potential revenue streams, including sponsorships, selfie opportunities, meet-and-greet events and table dinners, were not included.
2. This allegedly created an opportunity for the sponsor to make huge profits. The report says revenue was deliberately understated while concealing the possibility of the sponsor making profits of at least Rs 200 crore.

SIT collects details from Prasanth

The SIT, headed by ADGP P. Vijayan, was constituted based on the findings of N. Prasanth’s first report. An SIT member, IG Satheesh Bino, collected information from Prasanth on the second report the previous day. The two met at Prasanth’s office in the Secretariat. Bino sought details of the findings in the report and the documents that formed the basis for preparing it.