Any compact 3-Sasakian manifold s is a principal circle V-bundle over
a compact complex orbifold Z. This orbifold has a contact Fano structu
re with a Kahler-Einstein metric of positive scalar curvature and it i
s the twister space of a positive compact quaternionic Kahler orbifold
O. We show that many results known to hold when Z is a smooth manifol
d extend to this more general singular case. However, we construct inf
inite families of examples with b(2)(Z) = 2 which sharply differs from
the smooth case, where there is only one such Z.