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Monday, 20 June 2011

Reddy does not deny CAG points

Reddy does not deny CAG points


NEW DELHI: Oil minister S Jaipal Reddy on Monday did not deny the government auditor's observations on the oil ministry favouring three private oil companies but slammed Opposition BJP and CPM for "premature" crticism of the government on the basis of a draft report.

Reddy also said media should not draw conclusions since the CAG report was yet to be finalized. He said the ministry will give an "appropriate response" to CAG in eight weeks and accept with "open mind" any critical comment if it is made in the government auditor's final report.

"I am not saying that CAG observations are baseless. If (there is) some substance, we should be concerned... Any observation or recommendation in the final report which is accepted by the government , will be acted upon and if (there are some which are) not agreed upon, we will not act on them," Reddy said.

ToI had on June 13 first reported the CAG report that said the ministry and its technical arm, Directorate General of Hydrocarbons, favoured Reliance Industries and Cairn India by allowing them to retain entire exploration acreage, turning a blind eye to increase in capital expenditure and sweetheart deals as well as giving additional area in violation of the contract with the government.

While Reddy accused the Opposition of jumping the gun, he was careful in offering no view on CAG's charges, claiming issues were complex and official files needed to be examined . Wary of another scam – Centre is still reeling under the CAG-induced 2G telecome scam – the government's effort seems to be to adopt a non-confrontationist stance, promising a detailed response to the CAG draft which will buy time.

Rather than putting forward a no loss claim, Reddy said gold plating allegations, need for better contracts and evaluation of capital expenditure will be examined. "I am not willing to prejudge what the ministry will say," Reddy said. He warned that incessant , premature criticism will affect decision-making .

Rebutting BJP leader Murli Manohar Joshi's attack on home minister P Chidambaram , who was the finance minister when the price of gas from Reliance Industries Ltd's Andhra offshore fields was set in 2007, Reddy said the BJP leader who is also the chairman of Parliament's Public Accounts Committee, is settling "personal agenda" .

Joshi had on Friday attacked the government for alleged favours to RIL and singled out Chidambaram for the criticism, demanding his removal from the Cabinet. Reddy said that since the CAG report will go to the public accounts committee headed by Joshi, the BJP leader was preempting the panel's role.

"Chidambaram was the member of an empowered group of ministers (EGoM) which fixed the gas price. It was not an individual decision . It was not Chidambaram alone... If decisions taken by EGoM is to be criticised personally , then there is no shelter for ministers... If this is the way criticism is mounted, it will be difficult to take decisions . Everybody will pass the buck," Reddy said.

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