SEARCH

Business » Industry

Updated: July 17, 2013 23:03 IST

RIL stalling audit of KG-D6 block: CAG

Sujay Mehdudia
Comment (5)   ·   print   ·   T  T  
A view of Reliance KG D6 basin. The Principal Director of Audit (Economic and Service Ministries), A.M. Bajaj in his letter to Mr. Rae, on Wednesday, 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.
A view of Reliance KG D6 basin. The Principal Director of Audit (Economic and Service Ministries), A.M. Bajaj in his letter to Mr. Rae, on Wednesday, 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.

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.

More In: Industry | Business | News

This is not the first time CAG makes the complaint that RIL is stalling a time bound audit
exercise. Why the ministries of Petroleum, Corporate Affairs and Law are not acting on the
complaint. The reason for the corporate' s adamant attitude seems to be largely due to the
denigration of the office of the CAG by the government spokeersons ,as we have seen in
2Gand similar other cases where the government was pulled up for wrong doings. The
government owes it to the nation that any corporate house given the job of exploiting
precious natural resources, comply with the terms of contract and subject itself to audits by
the statutory body to see if such compliance has been ensured. The hurdles faced by CAG
shows that there would be large scale irregularities, the company does not want to be
brought out , to add strength to a matter that an eminent parliamentarian like Mr. Gurudas
Dasgupta has been espousing in larger public interest. The government must act decisively
before it is too late.

from:  Shekar
Posted on: Jul 18, 2013 at 09:15 IST

I hope they are not zombie institutions.It cannot be known unless audit
is done and assets and liabilities are known.

from:  john
Posted on: Jul 18, 2013 at 00:13 IST

this is a typical strategy of the Ambani-Chorporation...

from:  Satya
Posted on: Jul 17, 2013 at 22:21 IST

Going by what the CAG has stated, it appears that RIL has scant regard for the law of the land. Perhaps the courts should take suo moto cognizance of this and initiate suitable legal action against RIL. In its current mood, it is doubtful that the Government will take any action by itself.

from:  G.Sridhar
Posted on: Jul 17, 2013 at 20:37 IST

when someone is denying information deliberately then there is a strong
need that CAG should be given authority to audit most of the private
firms also.CAG should be included in comptrolling process so that causes
and consequences of any policy measures can be judged effectively.

from:  sarvesh
Posted on: Jul 17, 2013 at 20:15 IST
This article is closed for comments.
Please Email the Editor
Both the tech giants have now decided to drop the patent cases in all other countries except U.S. Photo: AP

Timeline: Apple and Samsung patent game-play

2007: Apple sued its component supplier Samsung for four design patents, which included the basic shape of iPhone. It declared that most of the South Korean Company's android phon... »

National

International

Sport


O
P
E
N

close

Recent Article in Industry

Vijay Mallya

Mallya set to retain Chairman post in USL

UB group Chairman Vijay Mallya is all set to retain the Chairman’s post of United Spirits Ltd (USL), sources in the company said on Tues... »