CAG irks over Govt's move to narrow RIL audit

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CAG irks over Govt's move to narrow RIL audit
The Comptroller and Auditor General (CAG), which audits and assists the state and central institutions on their accounts and accountability, has raised concern over the government's move to narrow the scope of audit of Reliance Industries-operated KG-D6 block, official sources said.

The statement came after the controversy of alleged malpractices by Reliance Industries was bring into light by India against corruption (IAC) member Arvind Kejriwal.

"CAG is not inclined to conduct a routine audit, while Reliance has argued that its contract with the government allows only financial audit, not a performance audit — a stand that seems acceptable to the ministry of petroleum and natural gas," sources close to the development said.

The sources also revealed that Reliance Industries, which operates the KG-D6 block, is ready to abide by all the requirements of its production sharing contract, but is not willing to accept a performance audit, which is not mentioned in the contract. 

Speaking on the controversy of alleged malpractices in KG-D6 block, Oil Ministry said, "The issues will be resolves soon. The Production Sharing Contracts (PSC) provide for two audits, one by the Management Committee (MC) and the other by the Government. The Government can get an audit done by its representatives or through Chartered Accountants. Based on the audit by the Government, the cost petroleum will be determined and it will be crucial for finalising Government share of Profit Petroleum."

Read more about: reliance industries
Story first published: Saturday, November 3, 2012, 9:30 [IST]
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