RComm debunks spl audit report

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Mumbai: Reliance Communications (RComm) on Sunday said it has completed preliminary review of the special audit report, prepared by the department of telecommunications (DoT)-appointed Parakh & Co, and it is clear that media reports on the alleged adverse findings, selectively leaked on October 12, are baseless, unsupported and contrary to the facts. Prakash Sharma, the spokesperson of Parakh & Co, however, refuted the claims once again saying that the RComm officials knew the contents of the special audit report before the auditor submitted its findings to the DoT.

“RComm strongly affirms that it anticipates no additional financial liability towards licence or spectrum fee,” the company said in a media statement.

Even as the Indian telecom sector continues to make news, with the Union telecom minister under scrutiny over alleged irregularities in spectrum allocation to new players, the findings of the special auditor had created much media attention earlier this month. RComm chairman Anil Ambani had refuted the charges in a teleconference then, but said the company would first study the report and then take necessary action.

The DoT had appointed the special auditors to conduct audit of the accounts of the company and its subsidiaries viz; Reliance Communications Infrastructure Limited, Reliance Telecom Limited and Reliable Internet Services Limited for FY 2006-07 and 2007-08, as per the provisions of Clause 22.5 and 22.6 of the UASL Agreement. DoT has also appointed special auditors to conduct audit of all other major telecom operators namely Bharti, Vodafone, TATA and IDEA, and their reports are awaited.

RComm said it received a copy of the report issued by the special auditors appointed by DoT only on October 14, that too after persistent follow-up, though the said report was submitted to DoT on October 7.

The statement went on to say the special auditor’s report estimating alleged additional liability of Rs 316 crore is “incorrect, hopelessly biased, one-sided and prejudiced.”

The special auditor’s report is in fact in conflict with industry practice and judgements of TDSAT, CESTAT, etc. on several issues, it said, and went into elaborating why it felt so.