Over $2 billion lost in varsity games in China
Beijing, Dec 30 (IANS): A mega sporting event held in China last year caused a loss of 12.78 billion yuan (over $2 billion) as authorities failed to contain their expenditure within budget, an audit report has revealed.
The largest-ever world university games were held in China’s Shenzhen city between Aug 12 and 23, 2011.
Organised for university athletes by the International University Sports Federation, the games are an international multi-sport event, Shanghai Daily reported.
According to a report released by the city’s audit office, the income raised from the 26th Summer Universiade stood at 1.21 billion yuan ($195 million) from ticket sales and other promotional considerations whereas the games’ expenses were 13.99 billion yuan.
The report found the event went dramatically over budget mainly because some of the projects exceeded their budget, some made purchases that were unauthorised or in violation of rules, and some didn’t have budgets.
Organisers spent 4.49 billion yuan on operating the games, including the opening and closing ceremony; 7.52 billion yuan on building and renovating venues; and 1.986 billion yuan on other support facilities, the audit showed.