CAG itself needs an auditor: Shunglu panel

In a confidential report, the V K Shunglu committee on Commonwealth Games irregularities has recommended that the office of the Comptroller and Auditor General be itself audited by independent auditors appointed by a parliamentary panel.

In its report on "systemic changes" submitted to Prime Minister Manmohan Singh, the Shunglu panel has also argued that the government's official auditor will be more effective if it is recast on the lines of the Election Commission that has three members. It is at present a single-member body.

With "lessons for the future" being part of the committee's terms, the panel has called for changes in the functioning of the Central Vigilance Commission as well. The report recommends the chief technical examiner – responsible for technical audits – be made an independent wing.

The technical examiner's office currently reports to the vigilance commission and conducts audits of physical infrastructure in terms of quality and construction norms. It is being increasingly used for IT-related investigations too. The Shunglu panel feels it should be staffed by specialists hired from outside the government.

Hiving off the technical examiner's office will remove constraints on its functioning as its experts are drawn from government bodies like public works departments and are sometimes mindful that they will return to their parent departments where their stint with the vigilance commission may not be appreciated.

Shunglu panel sources confirmed that the observations on reform of governance processes – that follow six reports made public so far – were submitted to the Prime Minister's Office recently.

The panel's views on the official auditor are likely to generate comment given that Shunglu is a former CAG himself. The report argues that audit bodies in United States, Australia and UK are multi-member bodies and this reduces errors of judgment and ensures greater consistency.

The auditor's delay in taking up an audit of the Commonwealth Games organizing committee has been referred to in the context of a lengthy exchange of letters between the CAG and the sports ministry. The Shunglu panel feels a timely audit might have prevented some of the Commonwealth fiddles.

A regular audit of the Comptroller and Auditor General can be carried out by a team of independent chartered accountants appointed by the Public Accounts Committee. All reports prepared by the official auditor are placed before the PAC for detailed examination as in the case of its much-commented findings on 2G telecom scam.

Shunglu has suggested that the official auditor's three members comprise two members with legal and accountancy backgrounds and one a generalist.

In keeping with lessons drawn from Delhi's Commonwealth Games, the panel recommends that all government departments conduct independent audits. The auditors for this purpose can be recruited by a board comprising the comptroller general and vigilance commissioners apart from senior officials.

timesofindia