August 16 - A proposal to move the headquarters of Commonwealth Games Federation (CGF) from London to Kuala Lumpur after Glasgow 2014 was blocked today following protests from several countries.
The controversial plan, which would have seen the organisation leave the British capital after more than 80 years based there, was presented at the CGF General Assembly here today.
But a majority of the 71 delegates opposed the plan, angry at the fact it had been presented as a fait accompli by Prince Tunku Imran, the Malaysian President of the CGF, and the rest of the ruling Executive Board.
The six staff who work for the CGF in London had been called to a meeting at 7.30am here today where they were told of the plans to relocate in September 2014 and given notices of redundancy.
These included Mike Hooper, chief executive of the CGF.
But by the end of the meeting they had been told to "tear up" the letters after any decision was deferred to an extraordinary meeting on a date to be announced.
Tunku had earlier delegates that relocating from the CGF's current London headquarters, at a building in Piccadilly owned by EON Productions, the film production company that makes the James Bond movies, would save them £925,000 ($1.4 million/€1.1 million) within the next quadrennial.
The Commonwealth Games Federation are currently based in EON House, headquarters of the film production company that makes the James Bond moviesThe Commonwealth Games Federation are based in London's Piccadilly area at EON House, headquarters of the film production company that makes the James Bond movies
The CGF's roots are in the British Empire Games Federation, founded in 1932 following the success two years earlier of the British Empire Games in Hamilton, Canada.
Its name was changed in 1952 to the British Empire and Commonwealth Games Federation, and again in 1966 to the British Commonwealth Games Federation, until eventually being changed again in 1974 to the Commonwealth Games Federation.
But it has always been based in London.
"These were not easy decisions to make and the [Executive] Board recognises that there in particular personal ramifications for incumbent staff," Tunku had told delegates in the morning.
"I formally advised them of these decisions earlier today and reasons for them.
"All have been invited to apply for positions based in the new location on terms and conditions applicable under Malaysian law.
"However, no guarantees of an offer of employment have been given."
Prince Tunku Imran, President of the Commonwealth Games Federation, had broken news of the proposed move to staff before telling the General AssemblyPrince Tunku Imran, President of the Commonwealth Games Federation, had broken news of the proposed move to staff before telling the General Assembly
Many countries publicly showed their support to staff during the lunch break and it was no surprise that the proposal was defeated after being deferred from the morning to the end of the Assembly.
Tunku had claimed that Kuala Lumpur had been identified following a study carried out last year by professional services firm KPMG who considered a number of factors, including tax efficiency and the costs of overheads.
A total of 15 countries had been considered, including Australia, Bahamas, Barbados, Canada, India, Jamaica, Malaysia, New Zealand, Singapore and South Africa.
"The outcome of the Board's consideration of that work identified Kuala Lumpur as the preferred location, not only as a consequence of its substantially reduced overhead costs but also due to a series of unique tax concessions that the Federation can access, not only in relation to its income but also in relation to the remuneration of any expatriate employees, which would be tax free, with the subsequent benefit accuring back to the Federation," said Tunku.
"In addition to the projected savings of £925,000 across the next quadrennial, the Board is of the view that Kuala Lumpur's geographic location will lend itself to additional savings arising as well as enhancing the Federation's ability to do more for members.
"This decision was particularly sensitive for me as two of the Board members [myself and Dr M. Jegathesan, the CGF's honorary medical adviser] are resident in Kuala Lumpur.
"That is why we took independent advice on this matter and declared our interests in the matter."
But the opposition to the plan was summed up best by Sani Ndanusa, President of the Nigeria Olympic Committee.
"We often wonder how we appear to the international community," he said.
"Today we looked deep into the heart of how we appear to ourselves.
"It's not been an edifying experience and I trust there will be no repeat of this."