As Comptroller and Auditor General of India, Vinod Rai has produced unforgiving audit reports pinning government departments, the most recent being one on the 2G spectrum scam, which led to the telecom minister losing his job.

Vinod Rai has a good  first serve. He takes full advantage of his over six-foot frame to smash  the ball across the court. The opponent, a colleague of his, has to  receive the ball at an uncomfortable height. It is not competitive  tennis; it is a match that is almost like evening banter. But the  players are at it with enthusiasm. The venue is an abandoned parking lot  converted into a tennis court at the old office of the Comptroller and  Auditor General (CAG) in Delhi, a few hundred meters away from the  spanking new Dholpur stone structure that is the new CAG office complex.
Rai  has just inaugurated the court and is playing the first match with his  colleagues. "After we got a new office, we decided to convert this space  into a tennis court," says 62-year-old Rai, who has been playing tennis  and climbing mountains since he was in college. But it is not the aces  he serves on the tennis court that have made him famous.
As Comptroller and Auditor General of India, Rai has served up a few  uncomfortable audit reports that have pinned many government departments  beyond the baseline.
He has consistently hit the headlines for  his unforgiving audits, ranging from the scathing report on the shoddy  preparation for the Commonwealth Games to the latest on spectrum  allocations for second generation (2G) telecom services.
Bureaucratic  grapevine suggests there was quite a bit of pressure on Rai to dilute  the 2G report but he held fast, merely asking his people to check for  unnecessarily harsh or unfair language.
The report ripped apart the government, even pointing a finger  at the prime minister for arbitrarily giving away spectrum, a valuable  and limited national resource. The CAG report said the ultimate loss to  the exchequer could be as high as Rs 1.76 lakh crore.
The report, coupled with the leak of a set of recorded conversations  with a corporate lobbyist, has already cost Andimuthu Raja his job as  telecom minister and stalled the Winter Session of Parliament.
Rai  is among that rare breed of civil servants who know how to get work  done in the government. A former colleague says Rai has an uncanny  ability to cut through red tape.
One morning in January 2006, top  officials of the finance ministry were summoned by then finance minister  P. Chidambaram. The minister was reviewing proposals for the  forthcoming Budget and there was a paragraph in his speech about the  setting up of India Infrastructure Finance Company, something he had  announced in the previous Budget speech as well. The hitch was the  company had not yet been incorporated.
"Chidambaram was livid.  He asked how long will you guys take to just incorporate a company,"  remembers a bureaucrat familiar with the incident. The usual  passing-the-buck had happened within the ministry and both the  department of economic affairs and the department of financial services  had not been able to get the company going.
As Chidambaram flew  into a rage, Rai, who was then heading the department of economic  affairs, butted in and said it would be done by the weekend. After he  came back to his office, Rai called a joint secretary in the ministry of  corporate affairs and told him this company had to be registered by  that evening. The official told him it was next to impossible and  offered to brief him on the long process and the required documentation.
"I am told by your colleagues that you are a very good officer. It is  the prestige of the department at stake. This has to be done," he told  him. The official reportedly said that since Rai had challenged his  competency, he had to get it done.
The entire machinery cranked  into action, with the registrar of companies even getting a diesel  generator from another department to print the incorporation certificate  because there was a power cut.
India's premier infrastructure  funding agency was incorporated in those frenetic 24 hours and the  certificate was on Chidambaram's table, along with a note from Rai, the  next day. In the finance ministry, Rai is well regarded by his former  colleagues because he served as a bulwark between them and the minister.  "He had this thing that he was the captain of the team and he could not  expose them to the minister's ire," says an official, on condition of  anonymity, who worked under him.
Rai himself does not believe in being confrontational; he  believes in being persuasive. Sometimes it works, sometimes it doesn't.
He considers bringing autonomy to the boards of state-owned banks as  one of his biggest achievements in the finance ministry. But it was  severely put to test once.
This incident too happened in 2006,  when Chidambaram was his minister. In May that year, the Reserve Bank of  India had increased interest rates against the minister's wishes. The  markets had tanked and Chidambaram went on television reassuring  investors, despite his officials advising him against it. Next, he  wanted them to call up public sector banks and ask them not to hike  lending rates.
"I advised him that he should not do it. We should  let the bank boards decide for themselves," Rai remembers. Chidambaram  was adamant that since the government owned the banks, he had a right to  direct them. Rai stood his ground until the minister finally relented.  Rai says it is the secretary's duty to give his minister the correct  advice, however unpleasant it may be.
Unpleasantness is built into  the CAG's job as the chief nitpicker of the government. The CAG audits  how the government's money is spent and holds its different arms  accountable for the rupees that pass through them. He is now trying to  change that impression and convince government departments that CAG  audits can be constructive. "My Endeavour here has been to convince  various departments that it is not us versus them but that we are on the  same side," says Rai.
At the prime minister's request, the CAG  recently made a presentation before the defense ministry on spending  money allotted to it. Defense deals often attract criticism because of  their very nature and size and the ministry has been hesitant in  spending on even legitimate and urgent requirements. Rai suggested to  the ministry that it should, perhaps, look at a time frame of 30 months  for budgeted spending. The ministry has now agreed to start placing  orders that have been stuck for a while.
Rai is now trying to get the mandate of the CAG expanded in keeping  with the times. Currently, the CAG can audit the finances of only  government departments. For instance, when it examines utilization of  funds under the National Rural Employment Guarantee Act, panchayats,  which ultimately use the funds, are under no obligation to share  information about the funds they use. "In 1971 [when the Audit Act was  enacted], there were no PPPs [public private partnerships] or Panchayati  Raj institutions. So they do not come under our purview unless the  government specifically requests us to audit them. Even then, each  panchayat will have to make a request," says Rai.
Also, there is  no time limit on providing information that the CAG asks for. Rai says  even an applicant under the Right to Information (RTI) Act can get  information within 30 days. "I am only saying that we also get the  information we ask for within 30 days, the same as an RTI applicant."
Back  at the tennis court, Rai and his partner have won the game comfortably.  It is not that easy inside the office though. The 2G report,  ironically, has held up Parliament and one of the casualties is the new  Audit Act that would have widened the CAG's mandate and strengthened  Rai's hands.
In government, you don't win points even on aces.


 
 

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