CAG raps Oil Ministry over Reliance KG-D6 audit

Last Updated: Friday, November 02, 2012, 23:28

Tags: CAG,Oil Ministry,Reliance KG-D6 audit,Comptroller and Auditor General

Zeebiz Bureau

New Delhi: The Comptroller and Auditor General of India (CAG) has pulled up the Oil Ministry for agreeing to the conditions laid down by Reliance Industries for the audit of its KG-D6 oil field. The auditor is reported to have told the ministry that it should have been consulted before agreeing to the terms of Reliance.

According to NDTV, RIL wanted the CAG audit report of the KG-D6 basin to be kept within the Oil Ministry and not made public and tabled in Parliament, as is the procedure. The company also wanted that the audit should be carried out in its own premises and that Reliance Industries would give no other documents apart from those prescribed in the KG-D6 contract. The Mukesh Ambani led company also wanted an assurance from the ministry that no "exceptional" procedure be inserted in the CAG audit.

These conditions were found to be too restrictive by the CAG and it has written a letter to the Oil Minister on Friday asking why the ministry had agreed to the conditions of Reliance Industries for the audit of its KG-D6 gas field.

In the letter, the CAG is also said to have told the ministry that it always summons relevant documents and papers from the Oil Ministry as well as the operator relating to company audits. The CAG said that the final audit report will be presented to Parliament, as per the law.

Oil Minister Veerappa Moily has said that the ministry will try to solve the situation as early as possible.

First Published: Friday, November 02, 2012, 23:28

Comments

CAG is a responsible national auditor,it should be trusted be RILRule should be same for all-manik barman -tikrikilla,meghalaya

CAG report does not reflect the true/practical position of any Public Centre When a project implementation is delayed in PSU,there is loss to the tune of crores, why top official are not made accountable/put behind bar for not caring public money-L P Sinha -Berhampur, Odisha

The Audit procedures now existing were evolved for the auditof Public Departments Once Private Public Partnerships were made a part of the Developmental process,the procedures ought to have been revised to take into account the new arrangementsThere should be no unilateral amplification or curtailing of the procedure for audit by either partyLaerning a lesson from this fiasco, the Government and the CAG and the Industry should quickly evolve the new procedure for Audit in such casesThe unnecessary controversy created by the Audit comments on the functioning of Nuclear Safety Organization is a case in point showing the need for the CAG ofice to staffed with experts in every field and stop pretending that CAG orgainzation is Omniscvient and has the abilityand right to determine the rights and wrongs of every kind of activity under the SunIt is necessary to seek technical assistance in such situations-C S Radhakrishnan -GOA

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