Ansari for CAG audits of NGOs, societies, trusts

Move necessary for ensuring better “transparency and accountability” in spending public funds

GN Bureau | May 19, 2010



Vice-President Mohammad Hamid Ansari on Tuesday strongly favoured bringing NGOs, autonomous organisations, societies and trusts within the purview of the Comptroller and Auditor General of India (CAG). He said that this move was necessary for ensuring better “transparency and accountability” in spending public funds, an Indian Express report said.

Delivering the inaugural address at the diamond jubilee celebrations of Yarrows, the National Academy of Audit and Accounts in Shimla, he maintained this had become necessary as flagship social sector and infrastructure programmes of the government and provision of subsidies consume the bulk of resources. And these were being increasingly utilised through special-purpose vehicles (SPVs), NGOs, public private partnerships and urban and rural local bodies.

Ansari, who is on a two-day visit to the state, said finance minister Pranab Mukherjee, too, in his valedictory address at the 25th conference of accountants general last month, had sought the focus of public audit on containing expenditure on subsidies without adversely affecting targeted beneficiaries of such subsidies.

Ansari said any organisation that came under the definition of “public authority” under the Right to Information Act should be subject to CAG audit. The existing provisions, according to him, were restrictive regarding the audit of public funds spent by NGOs, autonomous organisations, societies and trusts. He said public audit had been envisaged as an assurance to all stakeholders in a democracy that public resources were “utilised for public good, in compliance with the intent of the legislature and the orders of the executive”.

Ansari expressed the need for a mechanism of effective follow-up on the CAG reports as “an analysis of CAG found that out of the more than 9,000 paragraphs included in the audit reports for the years 1994 to 2008 that were presented in parliament, about 3,000 had not even received the first response from ministries despite the government’s acceptance of a four-month time frame for the submission of Action Taken Notes to the PAC”.

He said an equally pertinent issue was the lack of any statutory authority vested in the CAG for summoning officials and seeking evidence on oath, undertaking follow-up to the audit reports, fixing responsibility on officials.

Comments

 

Other News

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

GST revenue for April 2024 at a new high

The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST

First Magahi novel presents a glimpse of Bihar bureaucracy a century ago

Fool Bahadur By Jayanath Pati (Translated by Abhay K.) Penguin Modern Classics, 112 pages, Rs 250 “Bab

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter