Amend CAG Act to make it part of legislature: PACs conference

Suggestions to amend the CAG Act to make the audit watchdog a part of the legislature as in the UK and Australia, empower Public Accounts Committees to examine PPP projects and bring finances of NGOs under Audit's purview were made at a conference here.
During the two-day conference of PACs of Parliament and state legislatures that concluded today, recommendations were also made to place binding obligation upon the officials to part with information and records sought by Audit, so that they do not try to stonewall.
It also favoured empowering PACs to set time limit for ministries to furnish action taken reports on audit and recommendations by it and recommend penalties for willful delay.

The conference, chaired by Lok Sabha Speaker Sumitra Mahajan and attended by PAC Chairpersons and officials from 28 states, also recommended making PAC proceedings open to the media except in sensitive cases.
The conference also saw demands for more power to be vested with PAC to curb irregularities and leakages and its recommendations be made mandatory and not treated as merely advisory.
"During the 15th Lok Sabha a suggestion was made by the then PAC that the Committee should be consulted before appointment of the C&AG and the C&AG should be part of legislature like in the UK and Australia. There is a need to amend the C&AG Act to this effect.

"There is a need to take a categorical view that PAC should have a primary jurisdiction over C&AG Reports, that PAC and C&AG should have power to examine Public Private Partnership Projects and bringing finances of NGOs under Audit's purview were some pertinent issues discussed," Lok Sabha Secretariat said in a statement.

"The need for complete independence of C&AG making it a part of PAC, need for harmony between C&AG at Centre and States and Need for improvement of accounting system of C&AG were also discussed at length."
"The need for Legislature to recognise that C&AG works on their behalf and the need to protect it whenever it comes under attack, tendency of State government officials to refuse and delay records and files to Audit and tendency of government to keep audit out of Government spending, example being funding of NGOs, Public-Private Model of development, etc. Were also deliberated upon," the statement said.

The conference also touched upon issues like the need to prioritise current audit reports and setting a time limit for ministries to furnish Action Taken Notes on Audit observations and PAC recommendations.
At the event, the speakers also felt that CAG Reports should be more current and examination of them should also be quicker so that the issues are dealt quickly.
It was also felt that the PAC can consider collection of information through social audit agencies, NGOs and public and through internet portals dedicated to PAC.