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AM Jigeesh
There are challenges in the process of auditing in the era of public-private-partnerships, says Chairman of the Public Accounts Committee KV Thomas. Set to get an extension for the third time, he shared with BusinessLine on why the PAC feels more powers should be given to the Comptroller and Auditor General (CAG) and why the government auditor to be brought under Parliament. Excerpts:
What are the main challenges bodies like CAG and PAC face on the issue of corruption?
We have made certain changes in the way PAC works. Sub-committees have been constituted to go in detail on a subject and their report is considered by the main committee. They have all the powers of the main committee. It has representatives of all political parties. They are free to function. As a result, the PAC could take a large number of issues. All the reports are unanimous.
One of the challenges is auditing of PPP models. The private partner does not accept CAG interference. They approach courts. Our stand is that where ever government money is involved, the CAG has to look into it.
What are the other steps taken in this direction?
There are 27 recommendations in a report we have submitted to the Speaker. We feel that the committee to select the CAG should have the Chairman of PAC as a member. It cannot be left just to the Executive. We want CAG to be independent with more teeth.
For example, in the case of KG Basin, the CAG did not have the technology. They should be able to call experts from the government or private, where ever expertise is available. In an area of oil exploration, as they did not have the expertise, everything went as per the private partner wanted.
Many complain that the reports on KG Basin and PPP in airports failed to quantify the losses to exchequer. Is it true?
The formula by which PPPs like KG Basin functions itself is fundamentally wrong. That formula has been formulated by the private party or the auditor appointed by the private party. How can it be justified? The expenditure is calculated according to the contractor’s formula. Same is the case of PPPs in airports. PPPs should have a clarity and transparency.
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