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LATEST NEWS UPDATES | Loss figure not sacrosanct, we are open to debate: CAG-Pradeep Thakur

Loss figure not sacrosanct, we are open to debate: CAG-Pradeep Thakur

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published Published on Aug 22, 2012   modified Modified on Aug 22, 2012
-The Times of India

The estimate of Rs 1.86 lakh crore mentioned in the CAG report on Coalgate as "windfall gains" to private players who bagged coal mines allocated by the government without bidding is not sacrosanct, according to senior sources in the auditing agency.

"We have never claimed that our estimate is not open to debate," sources said, adding that even the expression "windfall gains" was not that of the auditor. "We have only quoted the then coal secretary saying so," they said.

The clarification is important as it comes in the backdrop of Congress criticism that the auditor reveled in exaggerating estimates of presumptive loss by adding zeros, and that it had overstepped its mandate to question government's prerogative to frame policies.

Rebutting the charge, CAG sources said that its report on Coalgate, even the one on 2G spectrum, was focused on government's failure to implement policies that it had formulated. "Putting a figure on the presumptive gains does help highlight irregularities during implementation of government policies but our estimates can be debated. We have never said that they are above scrutiny. But what should not be missed is the concern we have raised on serious acts of commission," they argued. "If we had not put a figure on the windfall gains, no one would have taken notice of the report and the issues we had highlighted," they further said.

Rejecting the charge of minister of state in the PMO V Narayanasamy that CAG had exceeded its mandate and was meddling in policy matters, the sources said, "Tell us one instance where we have transgressed our limits. It should be remembered that we are entitled to do performance audit -- an obligation which involves an audit of economy, efficiency and effectiveness in the receipt and application of public funds. We have always taken care of not questioning government policies, we only evaluate implementation of these policies and comment on acts of commission."

Speaking to TOI on a day when both Houses of Parliament were rocked by opposition's protests over CAG's reports on Coalgate, sources expressed surprise over Congress's angry reaction. "It is very clear that government ignored the 2004 recommendation of the coal secretary as well as the advice of the law ministry to go in for competitive bidding. We think that a better way of dealing with the issue was to own up to the failure, promise to hold auctions from now on and to review the allocations which have gone to people pursuing businesses not even remotely connected to either mining or user industries," they said.

Considering that only a few of the allotted mines have been operationalized, a review would have been an easy way out, sources pointed out, adding that findings of the auditor on the allotment of a third mine to Reliance Power Limited and the concessions given to the promoters of Delhi International Airport Limited were far more serious in nature. "Opposition has cottoned on to coal allocation because the prime minister, by sheer coincidence, happened to be in charge of the coal ministry when some of the allocations were done," sources said.

They also pointed out that the three reports were simultaneously released on purpose and with the objective to magnify their impact as "trident" aimed against the government. "We submitted reports on May 11 itself, and it is the government which decided to bunch them," the sources said.

Reacting to the perception that CAG, with its refusal to factor in even honest mistakes, has become a deterrent for decision-making, sources said the auditor makes allowance for errors of judgment. "We don' focus on acts of omission, and go after only serious acts of commission. In fact, we have sensitized our officers to the pressures facing those required to take quick decisions."

The official pointed out how in the US, the Congress had changed the official auditor's name from the General Accounting Office to the Government Accountability Office (GAO) in 2004, admitting that the role of the auditor exceeded its mandate of investigating government accounts to ensuring accountability in the system.

Like in the US where the GAO is a watchdog of the Congress, the Comptroller General of India works for Parliament and is mandated to investigate each rupee of the taxpayers' money spent by the central government. Unlike in India, the head of GAO is appointed for a 15-year term by the President from a panel of names suggested by the Congress.

Times View

The CAG's reports have flagged some very serious issues indeed. The opposition parties have a right to demand that the government provide some answers to the questions raised. However, this is best achieved by letting Parliament function and then putting the government on the mat. Ensuring that it does not function serves no purpose. On the contrary, it means that public money being spent on Parliament is getting wasted while political parties indulge in grandstanding instead of doing their duty towards those whom they claim to represent. What we need is less posturing and more serious probing.

The Times of India, 22 August, 2012, http://timesofindia.indiatimes.com/india/Loss-figure-not-sacrosanct-we-are-open-to-debate-CAG/articleshow/15593594.cms


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