CAG agreed to confine to financial audit of Reliance Industries' KG-D6 block: OilMin
The CAG has agreed to restrict its audit of Reliance Industries' KG-D6 block to financial scrutiny of the spendings on the flagging gas fields and a performance audit, if any, would be done of the Oil Ministry, a senior government official said today.
"CAG had a few days back given to us in writing that the audit of Block KG-DWN-98/3 (KG-D6) will be strictly as per Section 1.9 of the Accounting Procedure to the Production Sharing Contract," the official, who wished not to be identified, told reporters here.
The PSC provides for a financial audit -- checking of the contractor's accounts in order to verify the charges and credits, but not a performance audit that scrutinises efficacies of processes or technology used in the complex deep sea operations.
"CAG has agreed for a financial audit (of RIL's KG-D6 spendings) and a performance audit if it has to be conducted, will be done of the Petroleum Ministry and/or the Directorate General of Hydrocarbons (DGH)," the official said.
RIL will provide any documents needed in doing such an audit, he added.
Sources however maintained that the CAG statement did not mean an end to the stalemate between the official auditor and RIL.
The company, to be begin with, may refuse to provide documents related to the tendering process it followed for buying equipments or in selection of service providers, something which is unlikely to be acceptable to CAG, they said.
The auditor may want to examine whether government's profit take from
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