Two more explosive CAG reports ready

New Delhi: Fresh trouble seems to be brewing for the UPA government, as the Comptroller and Auditor General (CAG) has completed two more high-profile audit reports that could bring attention back to political corruption and misdeeds at the highest levels.

Sources said the CAG has finalized and printed its audit reports on Air India and oil exploration contracts, including the one for Reliance's KG Basin. The reports are expected to be forwarded to the government in the next few days. It's up to the government then to table it in Parliament as the scheduling is done by it.

Whenever they are tabled, the reports are likely to draw attention to the government's decision making-by respective ministers and even an empowered group of ministers-on some of the major commitments of public funds and resources. The CAG report on AI covers, among other things, the purchase of 111 aircraft for over Rs 40,000 crore in 2006. Sources said CAG had made adverse observations on several aspects, ranging from the wisdom behind ordering so many aircraft by a financially weak body to the financing of the deal. Losses on account of what's described as wrong purchase plans, inflated loans, delay in the return of leased aircraft, etc, are estimated at over Rs 2,000 crore.
20/08/11 Joy Joseph/Times of India

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Categories: Air India Aug 2011