Government audit lays stress on reporting deviations from set procedures and policies.Audit for private companies is essentially for protection of shareholder interests and measuring compliance against rules and regulations currently in force in running the business.In instances of hybrid ventures as in PPP, a pre-audit of the framework and key features of the collaboration will serve far greater good than by delving into the nitty- gritties of accounting ,post audit.If fair competition is ensured the Market will set the price.The crux lies in the transparent manner in which a PPP contract is drawn up and partners get reasonable protection against absolutely unforeseen factors. This is where CAG could step in usefully ,for large and critical PPPs
CAG was perhaps not meant to be merely an auditor, as this functionary takes an oath identical with that prescribed for the CJ and Judges of the Supreme Court.It submits its reports to the President of India, who causes them to be laid before Parliament, the measure of a well informed and empowered institution .CAG has thus to don the robes of a consummate guide, armed with the macro view of vital policy options to lay before the government .that would eventually end up in a successful event. It should not be reduced to an agency ,merely reporting lacunae of failing ventures.
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