AUGUST 09, 2015

By TIOL Edit Team

WHO cares for public accountability of the powers that be? Who in the Government is bothered about what information CAG asks for and what CAG audit says? What is the relevance of anti-corruption watchdogs in an abused democracy like India?

These questions would perhaps appear cynical to persons at the helm of affairs. They would, however, strike the right chord in the mind of citizens who believe that democracy without public accountability is bad governance.

There are three immediate provocations for raising these issues. First is the absence of Lokpal at the Centre and Lokayukta at National Capital Territory of Delhi, both of which are headed by leaders who excelled in their anti-corruption rhetoric before coming to power.

It is important to set up 100% independent anti-corruption watchdogs. They should comprise persons of impeccable service record or else they too would become breeding ground for corruption. An obvious case in point is the unfolding corruption and extortion scam in Karnataka Lokayukta.

Second worrisome factor is the Modi Government's handling of Lalitgate in a totally non-transparent and arbitrary manner. It has stonewalled two valid RTI queries on this subject. The least it should have done was to unilaterally offer setting up of Joint Parliamentary Committee to probe External Affairs Minister Sushma Swaraj's role in it. The Government can't shirk responsibility to fix blame for letting Lalit Modi avoid for too long the interrogations by Enforcement Directorate and Directorate of Revenue Intelligence.

What should worry NDA more is the perception that Lalitgate has acquired credibility among masses due to prolonged silence of Prime Minister Narendra Modi. PM's silence has created an impression as that there is something fishy about Modi Government' role in Lalitgate. As the Hindi Idiom goes: Dal Me Kuuch Kala hai.

Third disturbing factor is disclosure by CAG in its latest report about the Government's failure to reply to several audit observations.

CAG's report on ‘Union Government (Commercial) No. 21 of 2015 (Compliance Audit Observations)' comprises two volumes. Volume I contains 31 individual audit observations relating to 28 PSUs under the control of seven Ministries/Departments.

According to Volume I, CAG forwarded draft observations to the Secretaries of the concerned ministries under whose administrative control the PSUs are working to give them an opportunity to furnish their replies in each case within a period of six weeks. Replies to 15 observations were not received even as this Report was being finalized.

CAG, however, incorporated replies of PSUs' management in Vol I, whose audit observations have total financial implication of Rs 6,179.35 crore. Vol I also contains a para relating to recoveries of Rs 56.60 crore made by seven PSUs at the instance of Audit.

Audit observations are primarily about 1) non-compliance with rules, directives, procedure, terms and conditions of the contract; 2) non safeguarding PSUs'financial interest and 3)defective/deficient planning.

Volume II of the report contains 37 individual audit observations pertaining to 18 PSUs under the control of seven Ministries/Departments. In this case, the concerned ministries did not submit replies to 27 observations till the period when the report was being finalized. The details about the audit observations are similar to the ones mentioned in Volume I.

This is not for the first time ministries have failed to respond to draft audit observations. Instances of ministries not submitting requisite files/cases to CAG or dragging feet over parting with docs are aplenty.

CAG has voiced its frustration over denial of information both through public and private/official communication.

Under UPA regime, CAG repeatedly stated: "While the RTI Act provides for specific penalties for non - production of records/reply in the stipulated period, there is no mechanism for timely production, or in the failure to do so, awarding deterrent penalties for non - furnishing or incomplete production of records to CAG's audit."

CAG Shashi Kant Sharma had followed up this demand with NDA Government.

In a letter to Finance Minister Arun Jaitley in June 2014, CAG reportedly said it should be given RTI powers to access information.

He suggested that The CAG (Duties, Powers and Conditions of Service) Act should be amended to incorporate a penal provision to make it mandatory for Govt officials to furnishing of information in a time-bound manner.

CAG has been demanding amendment of this Act or enactment of a new CAG empowerment law since November 2009. This initiative is required to not only improve audit and its utility but to also put under audit several regulators and massive expenditure kept outside the purview of CAG.

It is odd to find that BJP that chided UPA regime for policy paralysis is perpetuating the paralysis on several fronts including audit.

As soon as the half-washed monsoon session of Parliament ends, Modi Government should make sincere efforts to salvage its reputation. It should do this by issuing ordinance on amendments to CAG (DAC) Act and the Lokpal and Lokayuktas Act, 2013 and further to amend the Delhi Special Police Establishment Act, 1946.

This should be followed by immediate constitution of Lokpal, which could suo moto investigate Lalitgate and other scams brewing under NDA Government's carpets.

If NDA does not go out of the office the UPA way, it must learn to keep its word on public accountability. There is a lot much more to do on this front, in addition to setting up Lokpal and enhancing the powers of CAG and Central Vigilance Commission.