The Hindu : Fernandes challenges CAG role again

Online edition of India's National Newspaper
Wednesday, Apr 03, 2002

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Fernandes challenges CAG role again

By Our Special Correspondent

NEW DELHI APRIL 2. The Defence Minister, George Fernandes, has again questioned the constitutional role of the Comptroller and Auditor-General of India. Instead of replying directly to the CAG's observations in his latest report, Mr. Fernandes has publicly aired his Ministry's differences on the auditing of defence purchases, forcing analysts to call his move "unusual.''

The Defence Ministry today sent a two-page rejoinder to the CAG report on the purchase of special purpose helicopter worth about Rs. 1,000 crores on the basis of a single tender.

The CAG had contended that negotiations for "unproven'' helicopters of Russian make were initiated and sealed within a week even as the country was preparing for general elections. The price for the "copters and spares appeared to be exorbitant and the radar technology was 18 years old."

The CAG had pointed out that the matter was referred to the Ministry in June last year and he had waited for a reply till December 2001 before finalising his views. The CAG had also written demi-official letters to the Defence Secretary requesting his response within the stipulated four-week period and brought to his "personal'' notice that since the issues were likely to be included in the CAG's audit report, it would be "desirable'' to include the Ministry's comments.

Mr. Fernandes has once again chosen to challenge the CAG's findings as he had done in the infamous "casket controversy," when the Defence Ministry released file correspondence to the public. Much of it was then published in a booklet.

In the latest instance, the Government has rebutted the CAG's views on purchasing an "unproven air early warning (AEW) helicopter'' by asserting that its radars "will not be outdated as other avionic equipment''.

The Ministry then "corrected" the CAG report on a number of counts. Time was of essence in purchasing the helicopters because of a "major gap in surveillance capacity at sea.'' The helicopter was not unproven because it was first flown in 1988 and had completed 600 flights by February, 1996, when the evaluation team reached Russia.

It also denied initiating procurement action without finalising the naval staff qualitative requirements by pointing out that the needful was done in late 1995. The press release listed several other discrepancies in the CAG report.

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