PPPs to come under CAG scanner as new agencies evolve news
14 October 2008

Mumbai: With increasing participation of private companies in sectors which were earlier the preserve of the government, the Comptroller and Auditor General of India (CAG) has decided to bring five new sectors, including public-private partnerships (PPP), into its ambit.

Besides the PPPs, the CAG will also look into other sectors like environment and climate change, e-governance, social audit and regulatory bodies even as liberalisation and globalisation poses fresh challenges for audit process and methodology.

The CAG office will also examine the nature of reforms and review the audit processes as also methodologies and approaches to support its intended role at its ongoing biennial meeting.

While the central government has allocated Rs1,50,000 crore to various schemes, the CAG report said it was unable to trace the amount in transit under the changing models.

Liberalisation and globalisation are posing fresh challenges to the audit process and methodology as the number and varieties of organisational forms increase, CAG noted.

At any point of time there is an estimated float of Rs10,000 crore and under the current procedure, CAG is not able to capture the amount in transit or the actual sum utilised, says the report.

''This has been the issue with many national schemes such as National Rural Employment Guarantee Scheme (NREGA) and National Rural Health Management (NRHM). We found loopholes within these two schemes and informed the government. We're currently working on a system which can sort out government accounts where multi-layered agencies like non-governmental organisations (NGOs) are working,'' said deputy CAG, Bharti Prasad, on the eve of the 24th Accountants General conference.

Plans are on to enhance the role of state CAGs and further integration process between them and the CAG.


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PPPs to come under CAG scanner as new agencies evolve