Either listed or not, if project is under PPP, CAG can audit process of contract: Murmu

New Delhi: Amid the ongoing tussle between Opposition parties and the BJP-led government at the Centre over the formation of a Joint Parliamentary Committee (JPC) to look into the allegations of fraud and stock manipulation against the Adani Group, the Comptroller and Auditor General (CAG) of India has stated that it is open to audit the books of account of companies engaged with the government through the public private partnership (PPP) projects.

While talking to Millennium Post, in an exclusive interview CAG GC Murmu said that it is our responsibility to review/audit the implementation of different projects commenced under the public private partnership (PPP) scheme.

“Whether listed or not listed, if a project is under the PPP model, it is the responsibility of the CAG to audit the process of identifying the private sector partner, requests for proposals (RIP), bidding and tendering process of the contract with due diligence to fairness, transparency and objectivity. It is under the purview of our policy to audit PPP projects,” the CAG said when asked if it is under the purview of CAG to initiate auditing of listed companies.

Commenting on ignorance of “discrepancies in implementation of social welfare schemes” in different reports, the CAG said, “There is no question of ignoring anything. We are supposed to point out evidence. In fact we are auditing different flagship schemes of the government too.”

“The performance audit of scholarships for students belonging to SC/ST, PM Kisan Yojana, Fasal Bima Yojana, and many others are being done by the CAG. We have pointed out discrepancies and red-flagged the areas where corrective actions were required to be taken by the implementing agencies,” he said, adding that in certain cases, we have also recommended fixing the responsibilities for discrepancies.

Notably, under the Comptroller & Auditor General’s (DPC) Act, 1971, and as incorporated in the Regulations of Audit and Accounts (2020), the CAG has the mandate to audit the data, records and documents in the possession of the government department, PSU or autonomous body which is the public sector partner of the PPP arrangement.

The apex auditor CAG has also the mandate to audit the data, records, analysis and the decision process of the government department/public sector agency to prefer the PPP route to execute the project instead of undertaking it directly. The Adani Group has been given many airports, ports, and greenfield expressways under the PPP model. On Blue Economy, the CAG said, “Right now the contribution of the blue economy in the GDP is around 4.1 percent and if we sustainably harness the activities in ocean, river water or any other source of blue economy, the contribution to GDP can be multiplied.”

Also, employment generation and sustenance for many is possible through blue economy as we have a very long coastline of 43,000 sq km, he said, adding that when it will be managed and integrated in a systematic manner, it will become a great source of wealth creation resulting into creating better livelihood meaning opportunities for the people.