NEW DELHI: Comptroller and Auditor General Vinod Rai
on Tuesday trashed the suggestion that the federal auditor's estimate
of undue gains to companies caused by the government's failure to
auction coal blocks was "fallacious" or "erroneous".
"We are incapable of making fundamental errors as being discussed in media. Our report will make clear all doubts on fallacies (that are) being talked about," Rai said at a seminar on 'Public Accountability and the Role of CAG', organized here by the Institute of Public Auditors of India.
Rai's remarks came a day after coal minister Sriprakash Jaiswal was reported to have dismissed CAG's estimate of Rs 10.7 lakh crore in gains for companies that were given coal blocks as "notional and imaginary." Earlier, on Saturday, finance minister Pranab Mukherjee had made light of CAG's estimates, saying that the auditor changes 90% of its draft reports after factoring in the government's explanations.
Rai's strong defence of CAG would indicate that its final report may not be very different from its draft report. Rai scoffed at the idea of government auditors arriving at figures casually, only to junk them later. "We are acclaimed internationally for our balanced reporting. Our officers are well trained and are so fundamentally strong that they don't do any basic errors. All our audit processes go down three-four layers, leaving no scope for mistakes."
His remarks confirm the estimate in knowledgeable circles that the draft report - reported first by TOI on March 22 - was prepared on the basis of detailed calculations and after detailed discussions with the coal ministry and, hence, was unlikely to be drastically altered.
On Tuesday, Reuters quoted CAG officials to say the final report would be close to the draft report.
Rai seemed angry over suggestions that CAG's figures were products of lazy arithmetic. "They ( CAG auditors) are the best in the world. Both developing and developed countries send their auditors to train with us at our academies," he said. "Effectiveness and robustness of our processes have led us to being appointed auditor for global agencies."
"Effectiveness and robustness of our processes have led us to being appointed auditor for global agencies."
He added that the UN had chosen India over the UK to audit its accounts and policies, even though the British auditors were costing less. Rai denied the charge that CAG had reduced its mandate to a faultfinding agency, while insisting that the auditor cannot but draw attention to shortcomings in the implementation of policies.
"We are not in the business of finding faults. But when we detect some loopholes during the process of audit, we advise the executive to plug those loopholes," he said.
-TOI
Tata Sons issued the statement in response to media reports that the commission's recommendation was the force behind the government's decision to allot coal blocks.
"We are incapable of making fundamental errors as being discussed in media. Our report will make clear all doubts on fallacies (that are) being talked about," Rai said at a seminar on 'Public Accountability and the Role of CAG', organized here by the Institute of Public Auditors of India.
Rai's remarks came a day after coal minister Sriprakash Jaiswal was reported to have dismissed CAG's estimate of Rs 10.7 lakh crore in gains for companies that were given coal blocks as "notional and imaginary." Earlier, on Saturday, finance minister Pranab Mukherjee had made light of CAG's estimates, saying that the auditor changes 90% of its draft reports after factoring in the government's explanations.
Rai's strong defence of CAG would indicate that its final report may not be very different from its draft report. Rai scoffed at the idea of government auditors arriving at figures casually, only to junk them later. "We are acclaimed internationally for our balanced reporting. Our officers are well trained and are so fundamentally strong that they don't do any basic errors. All our audit processes go down three-four layers, leaving no scope for mistakes."
His remarks confirm the estimate in knowledgeable circles that the draft report - reported first by TOI on March 22 - was prepared on the basis of detailed calculations and after detailed discussions with the coal ministry and, hence, was unlikely to be drastically altered.
On Tuesday, Reuters quoted CAG officials to say the final report would be close to the draft report.
Rai seemed angry over suggestions that CAG's figures were products of lazy arithmetic. "They ( CAG auditors) are the best in the world. Both developing and developed countries send their auditors to train with us at our academies," he said. "Effectiveness and robustness of our processes have led us to being appointed auditor for global agencies."
"Effectiveness and robustness of our processes have led us to being appointed auditor for global agencies."
He added that the UN had chosen India over the UK to audit its accounts and policies, even though the British auditors were costing less. Rai denied the charge that CAG had reduced its mandate to a faultfinding agency, while insisting that the auditor cannot but draw attention to shortcomings in the implementation of policies.
"We are not in the business of finding faults. But when we detect some loopholes during the process of audit, we advise the executive to plug those loopholes," he said.
-TOI
Coalgate: CAG may stick to 'Rs 10.7 lakh
crore' figure in final report; expected to
soften tone
NEW DELHI The national auditor is expected to stick to its
controversial estimate of Rs 10.7 lakh crore as gains accrued to
companies due to allocation of coal blocks on government discretion instead of auctioning them, an official in the Comptroller and Auditor General's (CAG) office said.
This is set to further embarrass the UPA government that has been mired in a series of controversies. "The report is not yet final, but the number is nearly final," the official said.
The person, who spoke on condition of anonymity because of the sensitivity of the matter, said the tone of the final report may be softer. The CAG may say Rs 10.7 lakh crore was the benefit that accrued to the companies, instead of calling it a loss for the government, he added.
A spokesman for the auditor declined comment.
Separately, CAG Vinod Rai said at a conference in the Capital that his auditors always did a thorough job and their services were sought by international bodies. "We are incapable of making fundamental errors and we do scrutiny at two three layers," Rai said.
Last week, the government rubbished the leaked draft CAG report that estimated the government lost Rs 10.7 lakh crore by giving away lucrative coal blocks to private and public companies such as NTPC, Tata and Jindal Group companies, instead of auctioning them.
As the controversy gathered steam, Tata Sons issued a statement saying the Investment Commission led by Ratan Tata had recommended auctioning of coal blocks in a manner similar to the exploration and licensing policy in the oil and gas sector.
This is set to further embarrass the UPA government that has been mired in a series of controversies. "The report is not yet final, but the number is nearly final," the official said.
The person, who spoke on condition of anonymity because of the sensitivity of the matter, said the tone of the final report may be softer. The CAG may say Rs 10.7 lakh crore was the benefit that accrued to the companies, instead of calling it a loss for the government, he added.
A spokesman for the auditor declined comment.
Separately, CAG Vinod Rai said at a conference in the Capital that his auditors always did a thorough job and their services were sought by international bodies. "We are incapable of making fundamental errors and we do scrutiny at two three layers," Rai said.
Last week, the government rubbished the leaked draft CAG report that estimated the government lost Rs 10.7 lakh crore by giving away lucrative coal blocks to private and public companies such as NTPC, Tata and Jindal Group companies, instead of auctioning them.
As the controversy gathered steam, Tata Sons issued a statement saying the Investment Commission led by Ratan Tata had recommended auctioning of coal blocks in a manner similar to the exploration and licensing policy in the oil and gas sector.
Tata Sons issued the statement in response to media reports that the commission's recommendation was the force behind the government's decision to allot coal blocks.
"The Investment
Commission, set up by the Government of India, had recommended that
investment in coal mining in India should be enhanced through bidding
for coal blocks and inducement of competition through a 'use or lose'
policy," Tata Sons said. The commission's report, "Investment Strategy
for India", finalised in February 2006, recommended that the country
should aim for an investment of $15 billion by 2010.
The commission had proposed 50% foreign direct investment in coal mining, commercial sale of coal by mine owners, and categorically supported steps to prevent hoarding and ensure competition, Tata Sons said. After the draft report was leaked, government authorities dismissed the issue as premature while the PMO issued excerpts of a letter from the CAG in order to establish that the media reports were a very preliminary estimate.
The UPA government has been embroiled in a series of controversies, including the controversial award of airwaves for which former telecom minister A Raja and top corporate executives were sent to jail. The CAG had estimated that the government lost Rs 1.76 lakh crore in the award of airwaves. The estimate has been dwarfed by the alleged losses from coal blocks.
The commission had proposed 50% foreign direct investment in coal mining, commercial sale of coal by mine owners, and categorically supported steps to prevent hoarding and ensure competition, Tata Sons said. After the draft report was leaked, government authorities dismissed the issue as premature while the PMO issued excerpts of a letter from the CAG in order to establish that the media reports were a very preliminary estimate.
The UPA government has been embroiled in a series of controversies, including the controversial award of airwaves for which former telecom minister A Raja and top corporate executives were sent to jail. The CAG had estimated that the government lost Rs 1.76 lakh crore in the award of airwaves. The estimate has been dwarfed by the alleged losses from coal blocks.
-ET
This #Coalgate scam is something unimaginable amount (nearly 25% of GDP, if I am not wrong, if we call our - a trillion dollar Indian economy). Thanks and congrats to Vinod Rai and Times of India to be bold enough to bring it out in public!
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