Wednesday, March 23, 2011

Circular 08-2011

Dear Comrade

Please find Circular 08-2011 posted below


15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012
Ph: 0120-2881727/4101593/ 0 – 98681 45667
Reference: AIA/Circular-08/2011
Dated: 23rd March 2011

Unit Secretaries,
Members & Spl. Invitees – NE &
Members of Women's Committee

Dear Comrades,

Two Circulars issued by the CAG administration in the last one month
shows that it is responding to some of the issues raised by us – on
the issue of 4 advance increments and on stepping up of pay of the
seniors' vis-à-vis pay of direct recruited juniors.

We have been demanding the implementation of the scheme of four
advance increments on line with court rulings. We had formally taken
it up with CAG twice vide letters dt 11.5.2010 and 29.11.2010 and it
was taken up in the agenda for meeting with DAI. The next stage has to
be, naturally, the demand for replacement of Qualification pay with
the scheme of 4 advance increments. We have already given a call for
signature campaign on the issue.

Similarly we have been insisting with the administration that it
should also permit stepping up of the pay of seniors vis-à-vis the pay
of direct recruited juniors as these orders have already been
implemented by Ministry of Railways and departments of Post, Revenue
etc.(our letter AIA/B-1/77/2011 dt 6th Dec 2010).

The wider issue of stepping up of pay of all promotees to the level
of pay fixed for the direct recruits treating it as the entry pay is
still pending in the anomaly committee with no solution visible in the
immediate future.

But the administration can not accept that it definitely want to
improve its image, rather credibility, with employees and their
organisations. The bilateral meeting with DAI was held on 18th January
2011, and till this date we have not received the minutes of the
meeting – though it is placed in the website of CAG!


The whole nation is discussing the role of CAG in bringing out the
biggest scams in the independent India – not one but three ie, CWG,
2-G spectrum and S-band. Though the first two is now known to one and
all less is known about the last one ie S-band. It is our department –
whether it is P&T Audit or MAB/Commercial Audit – that has brought
these two mega scams into the public domain – while in 2-G spectrum
allocation the presumptive loss is estimated at 1.76 lakh crores
rupees, in the case of S-band (on account of the deal struck between
Antrix corporation and Devas Multimedia), the presumptive loss was
pegged at atleast 2 lakh crores.

We all expected that the departmental authorities would seize the
opportunity and try to strengthen the accounting and auditing
functions to be the true watch dog of Indian finances. We sincerely
hoped that the work study conducted by the administration using the
services of 'Enron fame' Deloitte' & Touché would be truly used for
the benefit of the department, the tax payer, the people and the

It is a known secret that a good number of officers in Gr A who are
eager to chargesheet the employees for attending a meeting or a
demonstration or for availing a casual leave are willing partners in
the cover up operations, hand in glove with auditee organisations.
Many stories are going around.

But nobody expected that immediately after the audit report on
ISRO/Antrix Corporation (involving the shady deal with Devas
Multimedia) – that too on the footsteps of audit report on 2G spectrum
scam - came to the knowledge of public and the cabinet was forced to
cancel the deal with Devas Multimedia, the Commercial Audit wing has
come with a fantastic directive to all field offices including DGA
(P&T) that the criteria for the supplementary audit is totally changed
– that CPSUs with a turnover of less than Rs 5000 crore or paid up
capital less than Rs 500 crore need be taken up for supplementary
audit only at least once in five years!

From watch dog of Indian finances to the lap dog of the executive!

This is quite shameful and has to be opposed - if the administration
does not withdraw it immediately, has to be exposed.

The motive is very clear – to ensure that no more reports such as 2G
spectrum and S band do not come up.

Even otherwise in the recent past, the department has calculatedly
been reducing the quantum of audit and the functional separation of
audit and accounts has done irreparable damage to the cause of public


All the units may hold lunch hour meeting on 12th April 2011 to
explain the serious situation and endorse the letter written by HQr to
CAG on the issue (copy enclosed) demanding immediate withdrawal of the
said directive, by adopting a resolution, forwarding the same to CAG
through proper channel.

With regards
Yours fraternally,

Secretary General
Draft Resolution

The meeting of members ……………. ……………………..Association,……………held on 12th
April 2011 unanimously endorses the views communicated by the
Secretary General of All India Audit & Accounts Association on the
directive of the Pr Director (CA) on the conduct of audit of CPSUs
where CAG is a supplementary auditor vide his letter dated 2nd March
2011 (Copy enclosed).

This meeting urges upon the Comptroller & Auditor General of India to
cause withdrawal of the said directives and take steps to further
strengthen the accounting and auditing functions by providing enough
man power.

Resolve to submit a copy of this Resolution to Comptroller & Auditor
General of India through proper channel.

Further resolve to forward copy of the resolution to Secretary
General, All India Audit & Accounts Association.


15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012
Ph: 0120-2881727/4101593/ 0 – 98681 45667

Reference: AIA/B-1/05/2011
Date: 2nd March 2011

The Comptroller & Auditor General of India,
9, Deen Dayal Upadhyay Marg,
New Delhi – 110124


I am to invite your kind attention to a communication from Director
General (Commercial) II to all PDCA and Ms AB as well as to DGA (P&T),
communicating there-in criteria for selection of Central Public Sector
undertaking for annual audit. This communication is applicable to all
such CPSUs where the CAG of India is the supplementary auditor.

At the outset let me record our strong opposition to this fresh
directive on criteria – that CPSUs with a turnover of less than Rs
5000 crore or paid up capital less than Rs 500 crore need be taken up
for supplementary audit only at least once in five years – will
preclude 295 out of 368 CPSUs from the purview of accounts audit by
CAG of India.

This is exactly what the Expert Committee headed by JJ Irani (of Tata
Group) on amendment to Company's Act, 1956 had proposed.

It is known fact that the executive does not want the audit by CAG,
rather they are abhor to the concept of public accountability. What
surprises one is that the departmental authorities are kow-towing the
executive in this.

It would not be out of context to mention here the mobilisation of
Members of Parliament in a massive manner by All India Audit &
Accounts Association and All India Audit & Accounts officers
Association forced the government of India to backtrack from the move
while carrying out redrafting of the Company's Act 1956. We had then
mobilised letters from 700 odd MPs against this move.

It is quite horrifying to note that what the executive and lobby of
Chartered Accountants could not manage through the Irani Committee due
to the mobilisation of public opinion against it is being given on a
platter by the departmental authorities. It is not understood in whose
interest it is done – it is not in the interest of the Department or
the tax payer or of the people at large. What is being attempted to be
perpetrated is a big fraud on the concept of public accountability and
the Constitution itself.

It is a dichotomy that the department that is under flak from the
political executive on account of its principled position on public
accountability is willingly submitting to the wishes of the executive
in an area the government investment to the tune of 4 lakh crores of
rupees or more is involved.

This Association has all along been championing the cause of
functional and financial independence to CAG to discharge the
constitutional obligations. Any move from the departmental authorities
to dilute the auditorial oversight of Indian finances by CAG would be
opposed by this Association.

It is therefore requested that DG (Commercial) may kindly be advised
to withdraw the letter 31CA-IV/12-1998 Vol. II date 27.01.2011
prescribing the 'criteria for selection of CPSU for annual accounts'

Thanking you in anticipation,
Yours faithfully,
(M. S. Raja)
Secretary General