Charging Mukesh Ambani owned Reliance Industries Limited (RIL) of virtually stalling the audit exercise, the Comptroller and Auditor General (CAG) has complained to the Petroleum Secretary, Vivek Rae about the failure of RIL not furnishing financial statements, records and its failure to provide full access to SAP for verification of charges and credits in high value contracts and purchase orders for the KG D6 block.
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.
Stating that the flow of records/information was slow, Mr. Bajaj has pointed out that out of the 96 audit requisitions issued, the information/records in respect of 28 ARs (including 9 ARs for which only part information has been furnished) are still awaited. Further, it has said the operator (RIL) has been providing records/information in phases, rather than in complete manner. "Out of the pre-award and award related documents in respect of 54 purchase orders (Pos) which were called for in May 2013, information in respect of 27 Pos are still awaited. Also, the requisite SAP access display for auditor’s review, in respect of all relevant modules for verification of charges and credits, has also not been provided," the letter states.
The CAG office has also attached statements showing the status of the pending ARs and has pointed out that office of the Principal Director (Economic and Service Ministries) had also appraised the status of pending ARs and the progress of audit to the president and COO of RIL.
Further, it states that the operator (RIL), on June 4 2013, while giving the status of the replies/information/documents to audit in respect of the ARs issued till June 3 had mentioned that the pending information was being collated and would be provided when it was ready, which might take some time. "In this regard, it is mentioned that although a month has elapsed since then, reply/information in respect of only 13 ARs has since been provided to the audit. "Audit is a time bound exercise and, therefore, such delays in providing the records/replies hamper the audit work and schedule. It is, therefore, requested that the operator may be advised to furnish all the requisitioned information/documents to audit urgently," the letter adds.