Moily dismisses CAG report on coal scam

Corporate Affairs and Power Minister Veerappa Moily on Saturday said the Comptroller and Auditor General (CAG) is not a judge and has merely made an “estimate” which is “rebuttable” by the Centre.

His comments came in the wake of  CAG’s report on irregularities in allotment of coal blocks leading to “undue” benefits of Rs 1.80 lakh crore to private companies that was placed in Parliament on Friday.

“The CAG is not a judge; he has only made an observation and “estimated” the loss, which is always questionable.

The report is distanced from reality. Also, it has to be vetted by the Public Accounts Committee (PAC),” he said, adding, “You cannot construe a quid pro quo in every deal; what is important is whether due diligence was done or not.” 

Moily was speaking to reporters on the sidelines of the 44th Regional Conference of the Southern India Regional Council of the Institute of Chartered Accountants of India (ICAI).
He criticised those who suspected the “integrity” of Prime Minister Manmohan Singh, a veiled reference to BJP leader Arun Jaitley holding the PM “morally, politically and personally” responsible for the loss.

Earlier, in his inaugural address, he spoke on the paradigm shift in power generation in the years to come, when the private sector will be contributing almost 80 per cent of the total power generated, as compared to the dominant role of the States and the Centre currently.

He expressed optimism that the GDP growth this fiscal would be 7 per cent, saying the current slowdown is a transitional phase.

Moily said chartered accountants are “conscience keepers” of the nation; interestingly he also said the increasing scams underlined the role of chartered accountants in providing reliable information to all stakeholders.

The two-day conference with the theme “VISHWAS-Enhance Values, Inspire Trust” will be deliberating on various topics.