Comptroller and Auditor General (CAG) has asked oil ministry to ‘specifically incorporate’ its right to audit contractor(s) relevant documents of contractors in the future production sharing contracts (PSC).
In a letter to Petroleum Secretary, the CAG’s Director General (Commercial) II, P Sesh Kumar said the government auditor must have access to the books, accounts, records, documents and financial statements of contractors.
Therefore, Kumar asked the ministry to incorporate this right of CAG while entering into contract with private operators for award of hydrocarbon blocks under New Exploration Licensing Policy (NELP) rounds in future.
The letter states that the amendment should state CAG’s right to conduct audit of the records or documents, accounting records, books of accounts, financials statements, etc. of the contractors(s) under the provisions of CAG’s Duties, Powers and Conditions Serves (DPC) Act, 1971.
This follows the controversy over Mukesh Ambani- owned Reliance Industries (RIL) seeking to create one obstacle after another in the CAG’s attempt to carry out audit of KG D6 block up to 2012 and the subsequent refusal of CAG to carry out an audit under the conditions laid down by the contractor.
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