The CAG, after completing this month a detailed ‘internal appraisal’ of two of its most high-profile reports, has not just stood by its findings “regardless of media comments and the statements made by senior functionaries of the government,” but also substantiated them, citing additional crucial events.
The internal assessment has been done on its reports on the 2G spectrum scam of November 2010 and Civil Aviation (Air India) of September 2011.
The entire issue of irregularities in award of government contracts/licences in general, and specifically for scarce natural resources, to private parties, took centre stage. It gained further momentum with the arrest of the former Telecom Minister, A. Raja, and several senior industry leaders, starting February 2011. Later, the debate took a new turn after the Prime Minister’s statement in June 2011 that it was not the CAG’s business to comment on policy issues and that it should limit itself to the mandate given under the Constitution. It is these events that have led to a rigorous internal self-appraisal by the CAG.
2G scam report
Where the 2G scam is concerned, the November 2010 report, apart from highlighting a massive loss to the exchequer, flagged violations in policy implementation such as illegal advancement of the cut-off date, manipulation of the first come, first served procedure, undue haste in granting Letters of Intent and undervaluing spectrum by selling it without auction in 2008 at 2001 prices. The report highlighted serious concerns over governance systems within the Department of Telecom and the consequent, undeniable loss to the national exchequer. The CAG provided 3 estimates based on specific evidence — 3G auctions and the Swan and Unitech transactions — along with a caveat that “the amount of loss could be debated.”
Internal appraisal
Appraising its own conclusion of a loss, the CAG cites the Supreme Court judgment of February 2, 2012 which concluded that the actions of Mr. Raja and officers of the DoT were “wholly arbitrary, capricious and contrary to the public interest, apart from being violative of the doctrine of equality. The material produced for the quote showed that the Minister for C&IT wanted to favour some companies at the cost of the public exchequer.”
The CAG has highlighted that the court independently cited the same reasons, for cancelling the licences, it had pointed out while concluding that a loss had been caused to the exchequer.
Criticised for having estimated a staggering Rs 1.76 lakh-crore revenue loss — as a result of auctions not being held for 2G — which the government has dismissed as being a presumptive figure, the CAG now says, “it is only fair to point out that TRAI’s latest [May 2012] collation of reserve price for 2G spectrum approximates the calculation in CAG [2010 2G spectrum] report.” In fact, the appraisal highlights that “TRAI has recommended a reserve price for 2G spectrum of Rs. 18,000 crore for a pan-India licence for 5 MHz spectrum which is higher than the 3G value of Rs. 16,750 crore for 5 MHz used by the CAG for arriving at a [loss] figure of 1,76,000 crore.”
The CAG’s internal assessment concludes that its 2G report clearly stated that it was only examining the “implementation of policy” and that policymaking was the government’s prerogative.
In the final analysis, the CAG says, the internal assessment points out that its 2G report “had highlighted the unjust and opaque manner of allocation of scarce natural resources” and that “the Supreme Court having taken note of the issue has directed that natural resources being the wealth of the people, the state necessarily needs to adopt a mode of auctions to ensure a just distribution of natural resources.”
Keywords: 2G spectrum scam, CAG audit report, A. Raja, 2G spectrum allocation
If only we had a few more Vinods to head CBI,ED,etc ...
It shows that the PM will neither check the corruption of his teammates nor like agencies
such as CAG or CVC or even Supreme Court to comment on the corrupt policies of his
cabinet. Because PM has already stated that SC and CAG. Are interfering in so called
Governance. What the Government at the helm should do is being told by these agencies
and mind you they are statutory bodies of Constitution. If they also should not comment
common man any way cannot shout in the parliament and legislators are busy enriching
themselves.
Nowadays we witness most of the government agencies play to the tune of
the rulers. Even if they revealed something, they will go back to their
views and interpret it in a different way - such being the general
trend, the CAG's stand on these matters is highly laudable. Such people
only give respect / honour to their post - not those who play to the
tune of government to get post retirement benefit.
That the CAG was on the right track was evident from the flak it received for revealing the nexus between corporate honchos and political bigwigs from even the Prime Minister who is idolized for his incorruptible nature. Government was on the back-foot and so it decided to counterattack the CAG by disputing its findings and accusing it of overstepping its brief. I am happy that unlike many other organizations, most notably the investigating agencies that usually takes a U-turn to avoid political backlash, CAG has stood by its report and bolstered it by incorporating additional details. The man heading the institution, Mr. Vinod Rai deserves credit for not flinching from its position in the face of growing political pressure.
CAG's internal review of its decisions on 2G and Civl Aviation have been like "Agni
Pariksha" for Mr Vinod Rai on his very credibility in the light of criticism from the
Prime Minister himself for its roles. CAG has now come out with flying colours with
added justifications to its earlier findings. Hats off to Mr Vinod Rai. He deserves the
highest National Award, "Bharat Ratna" for his honesty, sincerity and integrity in
exposing losses of unimaginable proportions to the exchequer due to corrupt
practices of the very government he is serving. I shudder to think of the fate of the
country, had there been a pliable Constitutional Authority in his place.
Hats off to CAG Mr.Rai for giving a good breather in this corrupt political climate of our country, CAG and a strong lok pal bill can only make politicians restricted and justice can be delivered to the poor members of the society who deserves a lot.
Nevertheless the politicians has made a loot on the spectrum, Public has enjoyed the lowest call rates. But now if this said Rs. 18,000 crore is to be fixed and auctioned, then that huge amount will be transfered to the people only and in turn mobile operators are going to increase the rates!!!! END OF THE DAY PEOPLE IS NOT GAINING IN ANY WAY. But ofcourse apprecitate the corrupt are got caught.
Had every department at Goverment of India, worked the CAG way, the current economic condition, Fiscal Deficit, Slow Growth rate could have been very well avoided. It's not that Goverment is at LOSS, its the people and much required development at LOSS !!!! .
May the tribe of such upright and honest individuals like the CAG
thrive in India! We need more of Vinod Rais in India!!
Congratulation to CAG of India!
Thanks to CAG and SC. This speaks everything - "it is only fair to point out that TRAI’s latest [May 2012] collation of reserve price for 2G spectrum approximates the calculation in CAG [2010 2G spectrum] report"
To quote, 'TRAI has recommended a reserve price for 2G spectrum of Rs. 18,000 crore for a pan-India licence for 5 MHz spectrum which is higher than the 3G value of Rs. 16,750 crore for 5 MHz used by the CAG for arriving at a [loss] figure of 1,76,000 crore' That is the point being asked from day one! How can 3G be cheaper than 2G? The 'irregularities' or 'partisanship' or nepotism is a different issue and SC commented on only that. SC judgement does not in anyway vindicate the 'value' of 2G spectrum, arrived by CAG.
CAG stand out as one of the most respectable institution in India now.
Thanks to the leadership provided by Vinod Rai. Keep it up!
It is a bad news to our neo-liberals who want to sell off natural resources for a through away prices and a warning to the future governments. Any of the two leading combinations would be very happy to give too many concessions to the greedy money bags to exploit whatever resources remaining with us.CAG should be appreciatedfor this courageous stand.
The CAG it appears has done a U-turn on Mr Rai's view that the CAG has
power to review the policy framed by elected representatives and
therefore question the political framework in which policy was
prepared. Was he playing to the gallery when he attempted to take on
the prime minister's comments that the CAG had no business commenting
on policy as any political analyst would do.
Arbitration implementation of policy is for the law courts to strike
down. CAG's role is only when this arbitrary implementation caused a
loss to the exchequer. What loss did Raja's arbitrary implementation
cause which Shourie's implementation did not?
Corruption among our political leaders and bureaucrats is the the real danger to democracy. If things continue like this then in only a few years the poor hungry masses will rise and revolt. It is high time these people realise that things can not continue like this for all times.
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