Union Petroleum Secretary Vivek Rae informed reporters that the government resolved the audit issue pertaining to the operation of Reliance Industries (RIL)
in the Krishna Godavari (KG) D6 basin.
Speaking at the sidelines of a CII Annual General Meeting (AGM), Rae said RIL agreed to a Comptroller and Auditor General (CAG) audit on its operation in KG-D6 fields. Both the parties have resolved issues over scope and extent of its scrutiny, he said.
Following this, the CAG would conduct the audit for the last 3-4 years and if there are issues, the company can react and remedial action can be taken, he told reporters.
Rae said the government forwarded a letter to RIL and he hopes the company to respond to it in a day or two.
In January, the audit by CAG was suspended at the end of its first sitting with RIL following differences with RIL over scope and extent of the scrutiny.
Earlier, RIL argued that CAG cannot contractually perform a performance audit on it and Production Sharing Contract (PSC) only provides for a government appointed auditor to verify reasonableness of all charges and credits.
CAG too has now stated that it is not planning to a do a performance audit of the company but only wants to examine “propriety” of expenses made.
Leave a Reply
You must be logged in to post a comment.