India
Keralam CM Criticises CAG Audit Methods, Asserts Legislature Cannot Reject Reports
By PTI
Chief Minister V. D. Satheesan of Kerala said on Tuesday that a legislature cannot exclude a report presented by the Comptroller and Auditor General (CAG) from the scrutiny of the Public Accounts Committee (PAC), calling such an action an "unhealthy parliamentary practice." He cited a January 2021 resolution by the Kerala Legislative Assembly that excluded the CAG’s audit findings on the Kerala Infrastructure Investment Fund Board from PAC review, stating that the move "disrupted" normal parliamentary procedure. Speaking at the inauguration of the Conference of Chairpersons of Public Accounts Committees, Satheesan said that no legislature is constitutionally competent to dismiss a CAG report based on majority power. He warned that such practices undermine parliamentary institutions and accountability.
The CM also criticized the CAG’s methodology for calculating amounts, arguing that it often defeats the purpose of an audit. He referenced the CAG’s findings on the 2G spectrum allocation, noting that the estimated loss of ₹1.76 lakh crore was a hypothetical projection based on later benchmarks rather than the market conditions in 2008. He said the CAG had stepped outside its traditional mandate by questioning the merits of a deliberate government policy decision instead of auditing procedural and administrative lapses.
On the Vizhinjam port, Satheesan said the CAG treated the project as a public sector undertaking, although it is a public‑private partnership. He argued that applying generic public sector audit principles mischaracterized the project’s legal and financial structure and failed to account for the heavy state‑backed viability gap funding required for large infrastructure projects.
The chief minister called for a serious discussion on how PACs should treat audit findings that fall "out of the constitutional audit purview through misconception in the audit approach." He urged a special drive to clear the large number of files pending before PACs, some of which have been pending for over 20 years. Satheesan noted that he had successfully led such a drive as PAC chairman in the Kerala Assembly, and that the Kerala PAC had submitted the highest number of reports among PACs in the country, reflecting a sustained commitment to legislative scrutiny and financial accountability. He added that the conference would provide an opportunity to exchange experiences, share best practices, and discuss challenges faced by PACs across legislatures.