CAG to audit accounts of 5 telcos

The Comptroller and Auditor General of India (CAG), the apex audit body, has decided to audit the accounts of five telcos — Bharti Airtel, Reliance, Tata, Vodafone and the state-run BSNL — for 2009-10. The Telecom Regulatory Authority of India (Trai) has already appointed a nodal officer to facilitate this audit exercise.

“The audit is aimed at giving a reasonable assurance to the government on the revenue share from the licencees. In the current year, I propose to take up audit of the accounts of Bharti Airtel, Reliance, Tata and Vodafone along with BSNL,” Director General of Audit (Post and Telegraph) R P Singh said in a communication to Telecom Secretary P J Thomas. A senior Trai official said Manoj Mishra, a Deputy Adviser has been appointed as the nodal officer.

According to the Department of Telecommunications (DoT) notification in 2002, operators must give all statements, including financial statements, to Trai to calculate the licence fee to be paid to the government. And the regulator will act as a facilitator as and when CAG decides to audit the accounts of the telcos.

The DG (audit) is seeking a meeting with these operators next week to finalise audit plan and enhance mutual understanding between the service providers and auditors and wants the DoT to ask the operators to cooperate for the same.