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Updated: July 19, 2013 20:48 IST

CAG audit: Moily says everybody is cooperating

Sujay Mehdudia
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With CAG alleging that Mukesh Ambani-run Reliance Industries was delaying furnishing of records for audit, Oil Minister M. Veerappa Moily on Friday said there was no problem and “everybody” was cooperating. File photo
With CAG alleging that Mukesh Ambani-run Reliance Industries was delaying furnishing of records for audit, Oil Minister M. Veerappa Moily on Friday said there was no problem and “everybody” was cooperating. File photo

Virtually dismissing the accusation that Mukesh Ambani owned Reliance Industries Limited (RIL) was stalling audit of KG D6 block by the Comptroller and Auditor General (CAG), Petroleum and Natural Gas Minister, Veerappa Moily on Friday said there was no problem in the audit and everybody was cooperating.

Asking about the complaint by the CAG to the Petroleum Secretary, Vivek Rae that RIL was not cooperating in the audit exercise and was creating hurdles by not providing the required financial statement and access to records, Mr. Moily retorted: ``I don’t know. That I must find out. We are getting cooperation from everybody. There is no problem at all. The question is we should not destroy them, then you get destroyed yourself, I am telling you. This is what is going to happen. If you destroy somebody, you get destroyed yourself,’’ he remarked. The Hindu was the first to report on July 18 that CAG had complained to the Petroleum Ministry about RIL not cooperating in the audit.

In fact, at the time when Mr. Moily was asserting that all was well and everybody was cooperating, sources in the CAG office told The Hindu on Friday said that despite repeated reminders and assertions by the Petroleum Ministry that all was well, the CAG had not got any answers to nearly 28 requests it had made for smoothly carrying out the audit exercise from 2008-09 to 2011-12.

The Principal Director of Audit (Economic and Service Ministries), A.M. Bajaj in his letter to Mr. Rae, has sought his intervention, and pointed out the difficulties being faced by the CAG audit team conducting the audit of records of block KG-DWN-98/3 at the operator premises in Navi Mumbai, in getting prompt replies, information and documents. "The audit team has issued 96 audit requisitions (AR) calling information/records for verification of charges and credits in respect of high value contract/purchase orders awarded during 2008-09 to 2011-12, payments made in respect of contracts pertaining to previous years and relating to other issues," Mr. Bajaj has stated in his July 3 letter.

RIL on the other hand has maintained that CAG had sought massive information dating back to 2002-03 and it always takes time to provide the relevant records. ``We want public sector to be involved in exploration and production of oil and gas. We want private to be involved. But nothing should be done by breaking the rules or regulation. That we will safeguard. National interest will be safeguarded,’’ Mr. Moily added.

At the request of the Petroleum Ministry last year, CAG is auditing KG-D6 spending for 2008-09 to 2011-12. It restarted the audit in April after issues like scope and extent of its scrutiny were resolved. RIL had objected to the performance audit being carried out by CAG. However, CAG had stated that it is not planning to a do a performance audit of the company but only wants to examine propriety of expenses made. For doing that CAG has been given the discretion of requisitioning records as it deems fit.

He said India's natural gas production is expected to jump by over 66 per cent to 175 million standard cubic meters per day by 2016-17 as RIL and other firms will boost output on the back of higher prices. ``Gas production will rise from 105 mmcmd in 2013-14 to 129 mmscmd in 2014-15, 139 mmscmd in 2015-16 and to 175 mmscmd in 2016-17,’’ he claimed.

He said RIL's currently producing fields in eastern offshore KG-D6 block will see output dip from 18.7 mmscmd in current year to 17.4 in 2014-15 and 15.02 mmscmd in the next year but will start to rise from 2016-17 when newer fields in the block are brought to production. State-owned Oil and Natural Gas Corporation (ONGC) is expected to produce 29 mmscmd from neighbouring KG-DWN-98/2 or KG-D5

block from 2016-17. Also, Gujarat State Petroleum Corp (GPSC) will hit a peak of 5.24 mmscmd output from its KG-OSN-2001/3 block in KG Basin that year, he said.

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What the minister means to say is everybody is cooperating? To hide the discrepancies or now everybody is cooperating to get more profits?

from:  Martin Kurian
Posted on: Jul 21, 2013 at 19:53 IST

Clearly,Moily should step down.Else, it will be construed that he is acting on behalf of Manmohan Singh and Sonia .Moily should not think that he is acting on behalf of UPA only. He is acting on behalf of 100 crore people of india. He will be made accountable for his blatant and open support to RIL. We don't want RIL,if it does not act in the interest of our country and people of this country.
Let Mukesh become the richest man in the world .We are proud,not at the cost of our country and our people.

from:  varadh
Posted on: Jul 21, 2013 at 10:23 IST

CAG audit: Moily says everybody is cooperating.Asked about the CAG's
complaint,then he says," Idon't know......". Nice from the concerned
minister !!!

from:  Leela krishnan
Posted on: Jul 19, 2013 at 20:33 IST

Petroleum Minister has become a mouth piece of RIL reflects the pathetic state of affairs in this country where the ruling party does not care for proper functioning of any of the constitutional bodies.

from:  Vijay
Posted on: Jul 19, 2013 at 20:10 IST

What is the meaning of his statement? if we destroy others we destroy ourselves..he is openly threatening CAG.

from:  arman
Posted on: Jul 19, 2013 at 20:08 IST


Day after day, Mr.Moily is proving that he is more a Minister for
Reliance than of this Country. Be when he has got increased the prices
of Gas or now while giving certificate to the Company that they are
cooperating to CAG !

from:  Mani V K
Posted on: Jul 19, 2013 at 19:49 IST

When CAG, a constitutional organ is complaining against the RIL, a private company against which there are many complaints of corrupt practices, how can a petroleum minister say every thing is alright. With his comments it seems he is supporting RIL. He is against somebody destroying RIL but he dont bother if RIL was destroying the country for it's super profits.

Posted on: Jul 19, 2013 at 19:44 IST

It seems that the Oil Minister becomes the spokesperson of RIL. His
statement fell short of endorsing the non-cooperation of RIl and an
indirect advise to the CAG.

from:  Prabhakaran K
Posted on: Jul 19, 2013 at 19:22 IST

This man is always contradictory!
He recommends a higher rate for gas, gets CCEA to approve & then retracts back!
Now CAG says RIL not submitting documents, he says 'you will get destroyed yourself'
Who is he being plainly candid about? The Country or ...?

from:  Jay
Posted on: Jul 19, 2013 at 17:46 IST

Whom should the country believe, CAG or the minister? Everyone in the country knows that the minister is working for Reliance and wants to support them tooth & nail.

from:  kyc
Posted on: Jul 19, 2013 at 17:33 IST

Seems like Congress don't want exposure of another scam before General Elections.

from:  Santosh
Posted on: Jul 19, 2013 at 17:29 IST

It is not for the heck of it that CAG complains about non-cooperation of
RIL and thus dragging the audit endlessly. It is said many in
responsible position get favours and some are even in their payrolls.
Possibly this gives them ample leverage to do what they want.

from:  Krishnaswamy
Posted on: Jul 19, 2013 at 17:21 IST

" If you destroy somebody, you get destroyed yourself" That's why Moily
is not allowing CAG to harm Reliance group, that he may be destroyed
because of his link with them. He is not ashamed to favour them and
block all investigations.

from:  Mercy
Posted on: Jul 19, 2013 at 17:18 IST

Clearly someone is lying and misrepresenting / twising the facts - either the Minister concerned or the Staff of CAG (who've complained about non-coperative attitude of RIL) or the staff of RIL. Take your guess and pick the guilty

from:  SK Sharma
Posted on: Jul 19, 2013 at 17:00 IST
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