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RIL open to CAG audit on gas field expenses

Last Updated: Tuesday, August 18, 2009 - 00:22

New Delhi: Reliance Industries has told the government that it is "ready and open" to scrutiny by any of its agencies, including CAG, for the expenditure it has incurred on discovering and developing the KG-D6 gas fields.

At a meeting called by the petroleum ministry on the issue of Comptroller and Auditor General (CAG) of India auditing the books of private operators, the company stated that it had nothing to hide and was open to scrutiny, a government official present at the meeting said.
The government had in 2002 asked CAG to audit Production Sharing Contracts like the one for KG-D6 block with RIL, signed under the New Exploration Licensing Policy (NELP), but the premier auditor had then stated that its charter neither permitted audit of private accounts nor did it have the manpower to do so.

The government with the concurrence of CAG, appointed independent third-party auditors on the basis of an open bidding process. "These auditors have been operating on behalf of the government and auditing the accounts of companies like RIL," the official said.

However in 2007, CAG was asked to audit the exploration spends and the agency conducted audit of all the private company reports, copies of which were available with the DGH.
"They have not closed the audit report as they wanted to see some of the originals," the official said, adding that CAG had not asked any documents directly from RIL and was at present dealing with only the DGH or the ministry.

Bureau Report

First Published: Tuesday, August 18, 2009 - 00:22
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