For quite some time we have been reflecting in these columns on the report of CAG in respect of various departments of the Government. From what these reports indicate, and what the overall estimation of the CAG is about the way the State departments are responding to various lacunae or irregularities discovered by the audit teams, it appears that either the departmental functionaries are not conversant with the established process of handling or responding to the observations of the CAG or there is deliberate attempt to undermine the authority and status of the CAG. In either case it is a serious matter and unless the higher authorities in the State Government step in to remove the bottlenecks, things may not improve anywise. We have hinted at this much needed intervention by the Government but it appears that there is no will at any level to over come the impasse. This has made it a compulsion for the CAG to perform the role of an academician to bring home to the Government and its departments the philosophy behind the creation of the institution of the Comptroller and Auditor General of India and conferring upon it constitutional powers. By some inexplicable misunderstanding the State Departments have been nursing the wrong impression that identification by the auditors of financial and administrative irregularities or other observations in the context of state or centre sponsored projects and schemes is something like a censure which they are disposed to resent or react to negatively. In its overall report to both the Houses of the Legislature, the CAG has tried to throw light on this wrong impression. Actually, the task of removing any such misunderstanding or unhealthy impression is the task of the Secretaries/Commissioners of departments or the Chief Secretary. Since they have not perhaps felt it necessary to do the exercise, the CAG has itself taken the step and added some paragraphs in the final report to the purpose of impressing upon the departmental secretaries and other heads that CAG’s reports have essentially to be taken as corrective measures to regulate financial matters within the frame of prescribed rules and regulations. In this process, the Auditors bring in test cases and cite figures or append statistics to bring out the discrepancy and irregularity. It will be observed that in its reports the CAG invariably suggests in broad terms the remedial measures to overcome the irregularity and thus set the record right. This all has to be taken in the right earnest and not anything like censuring the departments.
The CAG in its report draws the attention of the departments to the fundamental purpose of all this exercise and this cumbersome process of the departments accounting for performance and delivery. The purpose is to bring relief to the masses of people, improve their standard of living, treat them with justice and fairness and also plan for the progress of the nation. If the departments are not willing to cooperate with the CAG by informing it what steps have been taken to set right the irregularities or to redeem huge financial losses that have occurred either through oversight or deliberately closing the eyes to the stipulations of the law, then the simple inference to be drawn by an impartial agency is that the State Government is not interested in the welfare of the people who have voted it to power. This is sheer injustice and the approach of the departments is unjustifiable
Four Performance Audits and 34 paragraphs proposed to be included in the CAG report for the year ended March 31, 2015 were sent to the Principal Secretaries/ Secretaries of the respective departments. However, replies in respect of one Performance Audit and 23 paragraphs were received. How will the defaulting departmental heads justify their inaction and expect the CAG to close its eye to the glaring irregularity? In yet another example of grave financial irregularity, during 2014-15, CAG pointed out recoveries worth Rs 1365.55 crore—Rs 1298.06 crore in audit report and Rs 67.49 crore in Inspection Reports. Concerned departments accepted the recoveries as pointed out yet when it came to effecting recoveries they adopted completely evasive attitude. As per the official data, an amount of Rs 29.05 crore was recovered as against Rs 1365.55 crore pointed out by the CAG. In this way whopping amount remained unrealized.
There are numerous irregularities and deficiencies noted in CAG report and we cannot comment on each of these. However, we will help the departments recollect that the Hand Book of Instructions for speedy settlement of Audit observations/Inspection Reports issued by the Government provides for prompt response by the executive to the Inspection Reports issued by the Accountant General (Audit) to ensure remedial/rectification action in compliance with the prescribed rules and procedures and accountability for the deficiencies, lapses etc brought out in the Inspection Reports.
In final analysis, the State Government would be well advised to bring about palpable change in the system of establishing the process of auditing and action on audit reports so as to contribute to the good governance of the State.
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