FEBRUARY 2014

POINT
OUT
You were of the view that 60%
government funding is not audited
and advocated all PPPs (Public
Private Partnerships) and PRIs
(Panchayati Raj Institutions) be
brought under the CAG ambit. Could
you elaborate?
The CAG draws mandate to conduct
audit by the CAG Act of 1971. Now, the
audit act talks only of the government
departments and government enterprises.
When it was enacted, there were
no such things as PPPs, joint ventures,
NGOs, self help groups, etc. The 73rd and
74th amendments gave a lot of powers to
the PRIs and urban local bodies. Obviously,
the 1971 law which has not been
amended as yet, did not bring PPPs or
PRIs within the ambit of CAG. So, all
that I have been seeking to do is to emphasise
the need to amend and update
that law because most of the government
spending now is through these sources,
through these channels, especially the
PRIs.
The UPA government has termed
the figure of loss in the 2G spectrum
scam as arrived upon by the CAG as
highly exaggerated? Do you feel the
same?
I said it throughout my service that
figures we gave were right and the audit
report explained in detail how we had
arrived at such a calculation of loss. The
entire audit department stands by the
figures and I have no hesitation in saying
that those figures are accurate and
realistic.
Is there any way you think the
selection of CAG can be more
transparent?
Certainly! I would suggest to the government
to take the appointment route
for CAG as followed in the case of the
Central Vigilance Commissioner (CVC)
or the Central Election Commissioner
(CEC). A collegium approach for CAG
too, will be helpful.
How can functioning of CAG be
improved?
Well, I think the Indian Audit & Accounts
department is a very professional
organisation. They are very
professional in their approach, are
apolitical and objective, and totally
transparent in the way they
conduct their audits. I think any
department must keep updating
‘Core values and culture start
first in the family. It is the
family, the parents, who impart
certain values such as honesty
and humility. Nobody can teach
you that in school or college”
‘I have been fortunate and
have not had anything
which I would call the worst.
Everything has been good,
generally good, for me”
‘Government officials
must recognise that in
Parliamentary democracy the
boss is always the minister. There
should be no doubt about it in our
mind because he is the one who is
accountable to the public,
and the Parliament”
its knowledge base to keep improving
its professionalism. This is a continuous
process and that should apply to the audit
services also.
You have made an interesting
observation that government must be
seen as supporting enterprises, and
not become an entrepreneur itself.
Could you talk about it?
The government’s role is to motivate,
nurture, and incubate enterprises,
industries and people to set up revenue
generating or employment generating activities.
Now, the government should not
play favourites. For example, the government
should motivate the textile industry,
automobile industry, pharma industry
and not start promoting individuals
from the industry. The government’s intention
should be that of a facilitator and
monitor and nothing more.
In a landmark judgement, the
Supreme Court said that the
bureaucrats should not take oral
instructions from netas (politicians).
What is your advice to young
bureaucrats and youngsters?
The SC is absolutely right. It will bring
in more accountability. India is a Parliamentary
democracy and we are all very
proud of it. Democracy has been
able to give us an almost double
digit economic growth. This
economic activity has to
be supported. This could
only be done through
good governance. Good
governance is provided
by bureaucrats or government
officials.
Government officials
must recognise that in
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FEBRUARY 2014