Stung by CAG censure, NHAI says auditor 'doesn’t understand PPP concept'

NEW DELHI: National Highways Authority of India (NHAI) has hit back at CAG on its recent report on performance of highway projects on public-private partnership (PPP) mode, highlighting major mismanagement and irregularities. Stating that the central auditor “lacks understanding the whole concept of PPP”, NHAI chairman R P Singh said they are ready to address all issues raised by CAG at a public forum.
“CAG has made the detailed presentation to media even before discussing it in the parliamentary committee. So, we are ready to have an open house on the issues they have flagged. I have requested two major industry bodies – CII and FICCI – to organize a programme where officials from NHAI and CAG can attend. We will accept where there are faults on our part,” Singh told TOI.
He added though the projects reviewed by auditor were awarded before his take over as chairman, NHAI would prefer to put the record straight. “This has once again proved that the CAG is competent to audit accounts and not on policy decisions. If the PPP has to happen, the institutions, legal system, judiciary, government departments and politicians need to have maturity to understand the concept and the rights and obligations of all the parties,” Singh added.
Though CAG report has cited several flaws in selection, award and execution of projects that resulted in NHAI failing to meet its targets, top officials had said on Tuesday that they were not into fault finding. They had added the report only flagged issues, which need to be addressed for success of PPP in the road sector. The officials had also said singling out NHAI cannot be right since such projects involved several stakeholders.