Only transparent CAG selection can keep Vinod Rai's legacy alive

The office of the country’s top auditor has never been more high profile than it was during the tenure of Vinod Rai. The government, which has been at the receiving end of the CAG’s extremely damaging reports on 2G spectrum on coal allocation, must be eager to return to the pre-Vinod Rai era. Shashi Kant Sharma, a 1976 batch Bihar Cadre IAS officer was sworn in as the new CAG on Thursday (23 May). The government ignored questions raised by the Opposition about a potential conflict of interest arising from appointing a former defence secretary as CAG, given that in his new role he will also be auditing defence deals. [caption id=“attachment_816005” align=“alignleft” width=“380”] PTI[/caption] This latest controversy has revived demands on the need to shed the secrecy surrounding the selection of the CAG. National commissions, civil society groups and more recently political leaders have argued for making the selection process of the CAG transparent and fair, suggesting that a collegium or selection committee be constituted to appoint the country’s top auditor. Earlier this year, a forum of retired officers of the Indian Audit and Accounts Service (IA&AS) submitted a memorandum to the Prime Minster and President, ahead of Rai’s retirement, to put in place a transparent selection process to appoint the next CAG. On the opacity of the present system, the memorandum states: “The system, if there is one, is entirely internal, and unknown to anyone outside except perhaps a very small group within the Government. Suddenly one day the media announce that a particular person has been selected as CAG. Parliament and the people do not have the slightest idea of the manner in which the most important functionary in the Constitution is chosen.” Firstpost spoke to BP Mathur, former deputy CAG and member of the forum, about the controversy surrounding the appointment of the CAG and the legacy left behind by Vinod Rai. Excerpts from the interview: How would you describe the legacy of former CAG Vinod Rai? What has been his biggest contribution to the office of the CAG? Vinod Rai’s biggest legacy was his belief in the professional competence and respect for the Officers who work in the Audit Department and on whose shoulders he prepared the Audit Reports. His biggest contribution was to make the Office of CAG high profile and take up issues of public importance and bring some degree of accountability on the part of Government. He could achieve this with the support of an active and vigilant media and earned the gratitude of the people of this country, who are tired of Governments misdeeds and corruption. The Forum of Retired Indian Audit and Accounts Service officers has been championing the cause for transparency in the selection process of the CAG. What is the Forum’s reaction to the manner in which the new CAG has been appointed? The Forum is extremely disappointed that an IAS Officer has been appointed to the post of CAG, ignoring the claims of IA&AS Officers, who are fully competent to hold the post. The appointment of an outside officer with no expertise in accounts, audit and technical work of the department, has a great demoralizing effect on the officers and staff of Audit Department and will impact its long term efficiency. What are the Forum’s suggestions on the selection process to appoint the CAG? The Forum had suggested that a committee consisting of Prime Minister, Speaker of Lok Sabha, Leader of Opposition in Lok Sabha, Finance Minister, and Chairman Public Accounts Committee and possibly the Chief Justice of India be constituted to select CAG. The criteria for selection should be: professional knowledge and expertise in accounts and audit; a willingness to point the finger at irregularity, impropriety, imprudence, inefficiency, waste, and loss of public funds, at whatever level this occurs, but tempered by a scrupulous judiciousness in criticism and comment; a capacity for understanding complex technical, contractual commercial, managerial, or economic matters and forming careful judgments, particularly when dealing with large government schemes or appraisals of public enterprises; management abilities for running a vast Department with more than 60,000 employees spread all over India; a passionate concern for rectitude and propriety, and impeccable personal integrity. The Forum had submiited a memorandum to the PM and the President in March. Has there been any response? No response to the memorandum was received from the Government. However, an acknowledgement to the memo was received from the Office of Shri LK Advani to whom a copy was sent. In July 2012 the Forum members had also met Dr Murli Manohar Joshi, Chairman Public Accounts Committee and submitted to him a memorandum regarding appointment of CAG. Given the open attacks by the government on the office of the CAG in recent times, has it become more important than ever to make selection of the CAG transparent? Yes. We should look into the international practice regarding appointment of head of Supreme Audit Authority (SAI). As SAI has been recognized as a legislative branch agency, helping to ensure the accountability of the executive to the Parliament, every democratic country has enacted laws requiring parliamentary approval for appointment of the head of the supreme audit institution, so that he is not under the influence of the executive, whose performance he is required to evaluate and pass judgment. In Britain, whose parliamentary traditions we follow, the hundred year old Exchequer & Audit Act was amended in 1983 to provide that the CAG will be appointed only after an address is presented in the House of Commons by the Prime Minister acting in agreement with the Chairman of the Committee of Public Accounts. In the US, a committee comprising, among others, the President of the Senate and leaders of the majority and minority parties in the House, makes its recommendation to the President. In Germany, Japan, New Zealand, South Africa and in emerging economies such as South Korea and Thailand, approval of the House of Representatives is taken for appointment of the head of supreme audit authority. On Friday a PIL was filed in the SC challenging Shashi Kant Sharma’s appointment as the new CAG. This is not the first time a PIL seeking judicial intervention in selection process of CAG has been filed. Earlier petitions have been dismissed Supreme Court. Has the time finally come for judicial intervention? If Government of the day is not observing norms of transparency, fairness and objectivity in appointment of high constitutional offices, citizens of this country have every right to seek justice from the Supreme Court.