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LATEST NEWS UPDATES | CAG conducts secret studies to warn govt

CAG conducts secret studies to warn govt

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published Published on May 30, 2013   modified Modified on May 30, 2013
-The Times of India


NEW DELHI: The comptroller and auditor general has started conducting secret studies, called management reports, which are not tabled in Parliament. Starting with a report on Commonwealth Games (CWG), four such reports have been out.

In the form of advisories, these reports are meant to forewarn the government on systematic faults and alert the departments to adopt fiscal prudence.

Besides the one on CWG, the official auditor has produced such studies on Defence Research and Development Organization, the external intelligence agency Research and Analysis Wing (RAW) and one on the National Technical Research Organization (NTRO).

"These reports don't come out regularly," said a senior CAG official, and technically are not audit reports as they are not carried out under Article 151 which would make it mandatory for tabling in Parliament. They are assessments of the working of secret departments and other key projects such as CWG.

Based on the CAG's report on RAW, the cabinet secretariat circulated guidelines on how expenditure should be regulated. Recording of expenses and accounting procedures in the external intelligence agency has since been restructured, the official said.

The CAG has also posted senior officials as financial advisors in most of these organizations to keep a watch on spending made from the government's exchequer.

Detailed instructions have been issued to most of these organizations to formulate a well-structured accounting system that records all expenditure. "In RAW, there is our officer sitting there and also in the DRDO where we have made some recommendations after we conducted a study," the official said.

"The RAW and NTRO have already streamlined their spending, they have issued instructions on all spending, including use of secret funds," the official added.

The CAG's management reports are shared only with the government and like in the case of CWG, it was carried out much before the Games infrastructure were in place, technically no money had been spent till then.

"There was lot of speculation on the lack of preparedness of the Games, so we carried a study and wrote to the prime minister enclosing our report saying this will give you an objective assessment of the infrastructure at each level," the official said. "We are the pioneers of this kind of management reports in the audit community world over," he added.

It was later copied by the British. The UK auditor's office took out a similar management study on the London Olympics three years before the event, giving an objective assessment of the preparedness of the games much before they started, the official said.


The Times of India, 30 May, 2013, http://timesofindia.indiatimes.com/india/CAG-conducts-secret-studies-to-warn-govt/articleshow/20340625.cms


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