Valentino Castellani on Thursday said he is to resign as President of the Organizing Committee of the Turin 2006 Winter Olympics (TOROC), Italian media reported.

Castellani's announcement comes a day after the Italian government appointed Culture Undersecretary Mario Pescante, who holds the sport portfolio, "supervisor" of Turin 2006.

Pescante will have extensive control over the organization of the games, something Castellani claims has undermined his position.

"The powers assigned to Pescante amount to an impeachment and a vote of no-confidence in the work done up to now and, above all, in my capacity to continue," he told reporters at TOROC's offices in Turin.

"I will not be a symbolic president or half a president. A president is someone with responsibility, powers and a role."     

Castellani said he will present his formal letter of resignation at the next meeting of TOROC's executive board.

The Italian government decided to effectively assume direct control of organizing the Winter Games because, under Castellani, TOROC has run up an estimated deficit of 150 million euros.     

The cost of hosting the Olympics looks set to be at least 60 million euros higher than was originally forecast.

TOROC has also failed to raise some 90 million euros of sponsorship money, which organizers had put in the revenue column of the budget.

The government will have to make up the shortfall. It effectively put Pescante in charge in order to limit the damage and ensure that the deficit does not grow any higher.

(Xinhua News Agency November 5, 2004)