PMO ignored Cabinet decision on GoM

The telecom spectrum allocation scam may not have occurred, says the draft report by Parliament’s Public Accounts Committee (PAC), if either the Prime Minister's Office or the Cabinet Secretariat had been scrupulous in enforcing prior Cabinet decisions.

In 2003, the Cabinet had said pricing of spectrum must be included in the terms of reference (ToRs) of any group of ministers (GoM) constituted to recommend on policy in this regard. In 2006, when a GoM was constittued, this was omitted from the ToR.

The draft report said the Cabinet Secretariat washed its hands off by stating the responsibility of ensuring compliance with directions of the Cabinet rests with the ministry/department concerned.

The committee said it was further irked by the PMO’s reply that it was not specifically required to enforce Cabinet decisions.

“The Committee are of the firm opinion that if it was not a requirement earlier on the part of the Cabinet Secretariat and the PMO to ensure the enforcement of Cabinet decisions, the 2G spectrum scam should be an eye-opener for them to at least now start the practice and vigorously monitor the effective compliance to every Cabinet decision,” the draft report said.

Besides the Cabinet Secretariat and PMO, the draft report accused the department of telecom and the finance ministry of knowing fully well that pricing of spectrum would not be in the ToR of the GoM set up in 2006.

"It is true that not only serious systemic flaws have crept in the governance of these ministries/departments, but also the malady is deep-rooted," the draft said.

The Committee also rapped the then finance minister (P Chidambaram), saying he was the guardian of the public exchequer, entrusted with the principal task of mobilisation of resources for public welfare. And, instead of initiating stringent and swift action against all those responsible for the whopping loss to the exchequer, pleaded with the Prime Minister to treat the matter as closed.