Thursday, July 14, 2011

Circular 17

Dear Comrade
Please find Circular 17-2011 posted below.
Yours fraternally
M. S. Raja
Secretary General



15/1089-90, VASUNDHARA, VASUNDHARA (P.O.), Dt. GHAZIABAD (U.P), PIN-201012

Ph: 0120-2881727/4101593/ 0 – 98681 45667



Reference: AIA/Circular-17/2011                                                                                                                                                                                            Dated: 14th July 2011



Unit Secretaries,

Members & Spl. Invitees – NE &

Members of Women's Committee


Dear Comrades,


In pursuance to the directive of the CWC meeting and the decision taken by the NE meeting on 13-14 June 2011, mobilising the public opinion for strengthening the public accountability was discussed with Secretary General, All India Audit & Accounts Officers Association in the presence of President of Our Association at Chennai on 9th June 2011. Com Haridas, General Secretary, Commercial Audit AOs Association and Com O. S Sudhakaran, General Secretary, Commercial Audit AAOs Association also joined the discussion.


The consensus emerged in the meeting was that we have to focus on the issue of public accountability from two sides – ie one, the refusal of govt to carry out necessary amendments to the DPC Act etc and two the abdication of constitutional responsibility by the CAG himself – especially in the light of the recent circulars curtailing the audit of accounts of PSUs (both Central and State). It was pointed out by some comrades that recent instructions issued by the CAG administration makes it categorical that the department is more concerned about playing to the gallery than ensuring public accountability. One the one hand CAG is demanding right to audit the Public-Private Partnership Projects (PPP) while instructions are issued to field formations to avoid critical reviews or comments there-on.


After detailed deliberation it was decided that 6th September 2011 shall be observed as "Sanction adequate Manpower to discharge Constitutional Obligation Day" by holding lunch hour meetings and adopting a resolution which may be submitted to CAG through proper channel. Draft resolution would be circulated later.


Proposals such as conducting a post card campaign addressed to CAG, signature campaign to be submitted to President of India, holding a National Convention at New Delhi followed by State level Conventions etc came up during the discussion. As the National Executives of the Associations would be the appropriate forum to decide on the course to be treading on, it was decided to hold a joint meeting of extended National Executive of both the Associations in New Delhi in the 3rd Week of September 2011, the exact date of which would be communicated later.


            With regards

Yours fraternally





Secretary General

Thursday, July 7, 2011

Circular 16-2011

Dear Comrades

Please find Circular 16-2011 posted below

With greetings,

Yours fraternally

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

Reference: AIA/Circular-16/2011
Dated: 7th July 2011

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

Dear Comrades,

The Deloitte & Touche' a transnational giant with its base in US is
engaged in all activities such as Audit, Tax, Consulting and Financial
Advisory Services, as they claim. This firm was engaged by the CAG's
administration to conduct a work study in IA&AD. The report has been
submitted nearly six months back. Till this date the recommendation
(or report?) has not been made public.

The experience in this great country is that any study on anything
that affects the workers/employees and the people at large have always
been against the workers' and people's interest.

We are told that it is not so with this study. Let us believe it, for
the time being.


Tthe developments in the recent past have raised certain questions,
rather doubts in our minds. The press report in the Hindu has
definitely compounded it.

The front page news appeared in "The Hindu" - 24th June 2011 - reads:
'Government cold to CAG's quest for new powers'.

The report says that CAG has proposed to the Govt, in 2010, certain
amendments to the DPC Act of 1971 such as a time limit for the
response by the department to the audit observations, mandatory
disclosures of audit reports and mandate to audit new form of govt
economic activity such as Public-Private Partnership (PPP), joint
ventures etc and other newly opened routes of expenditure such as
Panchayati Raj Institutions.

The All India Audit & Accounts Association whole-heartedly welcomes
this. These demands were raised by this Association way back in 1989,
in a convention held in New Delhi on 5th May 1989. This was followed
up thereafter in a memorandum submitted to Prime Minister and Finance
Minister in 1993.

The declaration adopted in the Convention held in 1989 demanded:
1. The audit of accounts of the Public financial Institutions like the
Reserve Bank of India, 19 Nationalised banks, Insurance Corporation,
Unit Trust of India, IDBI, Exim Bank of India, IRBI, NABARD, IFCI and
others be entrusted to CAG forthwith
2. A statutory provision should be enacted to ensure that adequate and
necessary funds determined by the CAG and vetted by the Estimates
Committee are placed at his disposal without any interference by the
Finance Ministry.
3. The scheme of Departmentalisation of Union Accounts should be
reviewed from the angles of economy, efficiency and its effect on
impairing the efficiency of audit. Until the results of this review
are not there, the process of takeover of State Accounts should be
4. Employees of Indian Audit & Accounts Department should be fully
compensated for the loss of promotion prospects etc caused due to the
takeover of functions by the Executive in several states.
5. The appointment of the next CAG should be made after consulting all
the state governments.
6. The proceedings of the Public Accounts Committee and Committee on
Public Sector Undertakings should be made open to the public in the
same way as debates in the legislatures are held or hearing in the law
Courts take place.
7. Taking cue from the recent changes in the laws governing the
Supreme Audit Institutions and their procedures, a High Powered
Commission/Committee of Parliamentarians and Experts should be
constituted to go into the entire question and suggest changes in the
constitutional and statutory provisions, procedures, purposes relating
the Supreme Audit Institution headed by the Comptroller & Auditor
General of India.

The basic issues raised by this Convention have more relevance today,
though there could be some changes with respect to certain niceties.

But the question that haunts is this: when CAG is proposing amendments
to DPC Act so as to strengthen Public Accountability why, then, there
is an abdication of responsibility within? The Circulars/letters
issued by Commercial Audit wing of CAG office introducing new criteria
for audit of accounts of CPSU in January 2011 and SPSUs in June 2011
run exactly contrary to the statement on Public Accountability.

When CAG is curtailing or drastically reducing the mandate what is the
fun in asking for more power? Instead of issuing fresh criteria for
audit of PSUs where-by MAB/AG is permitted to omit annual audit of
companies on some excuses what should have been done is to go for
massive recruitment in the base cadres of auditors and accountants –
from the local market.

The work already entrusted is not being carried out and it is whittled
down to the extent that it ends up with eroding whatever Parliamentary
control that is hitherto enjoyed. This is nothing but dichotomy.

The 2nd Administrative Reform Commission headed by Shri Veerappa Moily
(present Union Law Minister) had recommended the following:
"8.8.7 Recommendation
a. In order to further strengthen the Parliamentary oversight
mechanism, as many audit paras as possible need to be examined by
Parliamentary Committees. To facilitate this, the PAC and COPU may
decide in the beginning of the year itself, which paras would be
examined by them and which by their sub-committees (to be constituted
for the purpose). They may consider assigning other paras to the
respective departmentally related Standing Committees. The objective
would be to complete the examination of all paras within one year. In
exceptional cases, Chairman, PAC/COPU may authorize keeping a para
alive for more than one year. If still some paras are pending, it is
for the consideration of the PAC and COPU to refer these to the
Departmental Audit Committees (recommended vide paragraph 7.5 of this

And this fresh criteria for audit of accounts of PSUs has come after
the submission of this report!


In a question-answer session with select-editors of print media on
29th June 2011 the Prime Minister stated:
"I have not read the full report. This is a special report which the
ministry themselves had asked for. It is never been in the past
that the CAG has held a press conference – as the present CAG has
done. Never in the past has the CAG decided to comment on a policy
issue. It should limit the office to the role defined in the

It is not true that never in the past any government has done things
the way the present government has done and is doing!

The Prime Minister is deliberately hiding the fact that CAG's audit
reports are not on policy issues, it is on how the nation has bled on
implementation of these policies.

It may be the first time in any democracy that the Prime Minister
himself is questioning the role of CAG – if given a chance he may
prefer to undo with the institution of CAG, it seems!

What the government expects of the institution of CAG is it to become
a mouthpiece of the ruling dispensation (and unfortunately there are
some visible symptoms within).

Strengthening the institution of CAG and thus the Public
Accountability is in the interest of the employees and officers of
IA&AD and the people at large. We have to defend it, work for
strengthening it.

The National Executive Committee held at Shimla reiterating the
decision of the CWC held in February has called up on to rally round
the demand of strengthening the institution of CAG for the sake of
this country and its people.

All units may take this message to the membership and educate them.

With regards
Yours fraternally

Secretary General

Sunday, July 3, 2011

Circular 15-2011

Dear Comrades

Please fnd the Circular 15 posted below.

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

Reference: AIA/Circular-15/2011
Dated: 1st July 2011

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

Dear Comrades,


The NE that met at Shimla on 13-14 June 2011 decided to observe
"Restore Harmonious Relation Day" on 14th July 2011 by holding lunch
hour meetings and adopting resolution (draft given elsewhere in this
circular) in every office and handing over the resolution.

This might be a bit unique that an Association has to observe a day
demanding restoration of harmonious relation. As the caption states,
the relationship was very good which could be well termed as
harmonious for nearly three decades since mid-1970s. Harmonious does
not mean nor would ever mean that the administration and the
Association agreed on every point or did not try to assert. What ever
happened and wherever it is, issues used to be discussed frankly with
an intension to resolve. Meetings – formal and informal – were held
without any fixed time-table as and when a request was made and a need
was felt by either side. This is what was in vogue and this is what we
would expect and demand also.

Justifying the unjustifiable, mending and ending all the rules and
back-tracking from commitments once made will not help to develop a
healthy relationship. Maturity is in accepting the reality,
notwithstanding the wishful thinking.

All Units are requested to hold lunch hour meeting on 14th August 2011
and adopt the resolution given below and hand over the same to (Pr)
AG/DGA/Director for onward transmission to CAG.


The Confederation of Central Government employees & Workers, All
India State Govt employees federation, All India Federation of
University and College Teachers Organisations, Federation of School
Teachers Organisations, All India Defence Employees Federation and
Dakshin Railway Employees Union have jointly decided to hold a
National Convention against the PFRDA Bill on 22nd July 2011.

The Con federation has fixed number of delegates as given below .
Kerala-2, Tamilnadu-10, Andhra Pradesh-10, Karnataka-5, Mumbai-15,
Vidharba-10, Madhya Pradesh-15, Orissa-5, West Bengal-10, North
Eastern Region-5, Bihar-5, Jharkhand-2, Chattisgarh-2, Uttar
Pradesh-30, uttarakhand-2, Rajesthan-15, Gujarath-10, Punjab-3,
Haryana-2, Delhi-15 ,J&K-1

Each our unit may ensure that one representative from the unit do
attend the convention on 22nd July 2011 as part of the COC delegation.
The venue of Convention is MPCU Shah Auditorium, Delhi Gujarati Samaj,
Delhi – near to Civil Lines Metro station and ISBT, Kashmere Gate.

With regards,

Yours fraternally

Secretary General


This meeting of …………………………………………………Association, ……………held on 14th
July 2011 notes with dismay that the administration- staff side
relation in administration in IA&AD is not on the desired levels.

Requests for meetings – formal as well as informal – are not even
heeded as it used to be upto end of 1990s. The situation is much worse
in many of the field offices. There is some Accountants General who
even after two years after taking over has not held a single meeting
with Association representatives.

This meeting recalls the relation that existed in IAAD for nearly
three decades from mid-1970s when all the issues were subjected to
intense discussion and all out efforts were made to resolve them. The
administration of CAG used to take initiative to cause correction at
field offices. Meetings were never delayed. Complaints on violation of
norms in field offices were attended to promptly.

This meeting, therefore, urges upon the Comptroller & Auditor General
of India to cause corrections in the approach and attitude of the
administration leading to restoration of harmonious relation between
administration and staff side in the Indian Audit & Accounts

Resolve to submit this resolution to the Comptroller & Auditor
General of India through proper channel.

Further resolve to send a copy of this resolution to Secretary
General, All India Audit & Accounts Association, CSV Warrier Bhawan,
15/1089-90, Vasundhara, Dt Ghaziabad (UP) – 201012.