India-First-Global-Insights-Analysis -Sharing-PlatformIndia-First-Global-Insights-Analysis -Sharing-Platform

‘Do not clear’ – CAG to Oil Ministry for RIL KG-D6 plan

, November 17, 2012, 0 Comments

Auditor wants ‘Unfettered access to books of accounts’ before any approval

The Controller and Auditor General (CAG) has urged Oil Ministry not to approve any of Reliance Industries’ investment plans for KG—D6 gas field unless the company gives it unfettered access to audit its spending.

According to CAG “We would like to strongly recommend that pending complete submission of all supporting records by the operator relating to expenditure for previous years upto 2011-12 and comprehensive and detailed scrutiny thereof to verify that the government’s financial interests have not been adversely affected in any”

It further added “The Ministry may examine all relevant issues closely and carefully before considering the desirability of any future approvals of capital expenditure through the annual work programme and budget, development plans or otherwise, except those of an emergent nature”

The ministry is yet to sign on resolutions approving capital expenditure on the KG—D6 block for 2010-11, 2011-12 and 2012-13 fiscal pending resolution of CAG audit of spending on the block.

The Oil Ministry wants RIL to give CAG “unfettered access to account books” and pending that it has not approved the firm’s investment proposals including annual budget for three years.