CAG takes on Sibal, stands by 2G report

Kapil Sibal had questioned the findings of the CAG report on 2G spectrum allocation controversy.

New Delhi: The CAG on Monday said it stood by
its report on 2G spectrum allocation brushing aside the
Telecom Minister Kapil Sibal`s contention that the auditor`s
projection of Rs 1.76 lakh crore as presumptive loss was
"utterly erroneous".

"The CAG (Comptroller and Auditor General) stands by its
report on 2G spectrum 100 per cent," the CAG spokesperson told
reporters here.

In its report tabled in Parliament in November 2010, the
government auditor had pegged a loss of Rs 1.76 lakh crore to
the exchequer on account of allocation of 2G spectrum based on
2001 prices.

The 2G scam has become a major political issue with
the Opposition demanding a Joint Parliament Committee to probe
the alleged scam. The demand, however, was rejected by the
government leading to disruption of almost the entire Winter
Session of Parliament.

Sibal`s predecessor A Raja was forced to quit on the
issue of alleged scam in 2G spectrum allocation.

The CAG spokesperson referred to rules in
Parliamentary procedures and practices that prohibit any
official, MP or any member of Public Accounts Committee (PAC)
from commenting on any subject which is under consideration of
the PAC.

"That is why there is no comment from the CAG (on
Sibal`s statement)," the spokesperson said.

Last week Sibal had slammed the CAG for its projection
of Rs 1.76 lakh crore as presumptive loss terming its
methodology as "utterly erroneous" and said there was "no loss
at all" to the exchequer due to allocation of licences and 2G
spectrum in 2008.

"We believe the exercise (by CAG) was fraught with very
serious errors which resulted in a kind of sensationalism
which has allowed the Opposition to spread utter falsehood to
the people of India and we object to it," Sibal had said.

The CAG in its 77-page report had said that due diligence
was not followed and even the recommendations of the telecom
regulator TRAI were "not followed in spirit".

The report said the "presumptive" loss caused to the
exchequer through spectrum allocation to 122 licensees and 35
dual technology licences in 2007-08 was Rs 1,76,645 crore.

It arrived at the figure on the basis of 3G auction held
earlier this year in which the government mopped up over Rs
67,000 crore.

PTI

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