Audit Should Not Be Dampener For Private Companies: Manmohan Singh Told CAG


"However, it was the government that had taken the step to invite CAG to conduct audit, ostensibly with the objective of assuring the public and the Parliament that its interest were being adequately protected," Rai has written in the book titled 'The Diary of the Nation's Conscience Keeper -- Not Just an Accountant'.

Talking further about this particular audit in a chapter titled 'A slippery deal: Gas exploration', Rai said the management committee for these blocks had no voice in the operational control of the exploration and production operations" and therefore the government could not influence capital or any expenditure patterns.

There had been allegations of 'gold-plating' worth billions of dollars by RIL in this project, while it has also been alleged that the contract was biased towards the company.

"Not only was the PSC (Production Sharing Contract) stipulation not well suited to the government interests, but the intensity of over-sighting exercised by the government officials to protect officials to protect government revenue also appeared to be very lax.

"Every time the operator made claims, it was acceded to by the management committee, DGH (Directorate General of Hydrocarbons) or MoPNG (Ministry of Petroleum and Natural Gas). Each time it was acceded to, the action was detrimeto government interest," Rai said.

Source: PTI