CAG has mandate to audit private entities which use public resources, says Shashi Kant Sharma
Updated: May 13, 2014 04:09:10pm
New Delhi, May 13 (KNN) The recent ruling of the Supreme Court has removed the doubts on the Constitutional mandate of the CAG because it upheld that an entity that may be using public resources in its business and sharing revenue with the government can be audited by its auditor, Comptroller and Auditor General of India (CAG) Shashi Kant Sharma said.
While addressing an ASSOCHAM event on “Corporate Frauds” here today, he said that, “While the CAG would “not want to cross our boundaries”, the onus is on everyone that no one “upsets the public trust …”
He said in the coming days as the economy further picks up and avenues for private enterprises further open and “public interest and fairness would be on test”.
Seeking cooperation of private sector for confidence and credibility of the system, Sharma said “I am certain you wouldn’t want to be known as lynchpins of a crony capitalist economy”.
The recent ruling of the Supreme Court, upholding the judgement of the Delhi High Court was a landmark one since it removed the doubts on the constitutional mandate so far as it relates to CAG audit or revenue sharing.
Answering critics who question the domain knowledge with the CAG, he said, “CAG has expertise in various domains including gas, electricity, transport, infrastructure etc. Our institutional competence is well recognized, even in international audits and the institution takes pride in that…”
However, he said that mandate does not mean taking up audit in all cases. It would be done keeping in view the risk assessment as well as impact on public interest.
The CAG also advised the government to make sensible and simplified changes in the design of contracts so that incentives to fudge revenue are systematically removed.
In his address, Vigilance Commissioner, Central Vigilance Commission (CVC), J M Garg expressed concern over erosion in the society value system and the mentality to get quick rich. (KNN Bureau)
While addressing an ASSOCHAM event on “Corporate Frauds” here today, he said that, “While the CAG would “not want to cross our boundaries”, the onus is on everyone that no one “upsets the public trust …”
He said in the coming days as the economy further picks up and avenues for private enterprises further open and “public interest and fairness would be on test”.
Seeking cooperation of private sector for confidence and credibility of the system, Sharma said “I am certain you wouldn’t want to be known as lynchpins of a crony capitalist economy”.
The recent ruling of the Supreme Court, upholding the judgement of the Delhi High Court was a landmark one since it removed the doubts on the constitutional mandate so far as it relates to CAG audit or revenue sharing.
Answering critics who question the domain knowledge with the CAG, he said, “CAG has expertise in various domains including gas, electricity, transport, infrastructure etc. Our institutional competence is well recognized, even in international audits and the institution takes pride in that…”
However, he said that mandate does not mean taking up audit in all cases. It would be done keeping in view the risk assessment as well as impact on public interest.
The CAG also advised the government to make sensible and simplified changes in the design of contracts so that incentives to fudge revenue are systematically removed.
In his address, Vigilance Commissioner, Central Vigilance Commission (CVC), J M Garg expressed concern over erosion in the society value system and the mentality to get quick rich. (KNN Bureau)
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