---------- Forwarded message ----------
From: Prathiba Sundaram <prathibasam@yahoo.com>
Date: Thu, Sep 8, 2011 at 2:43 PM
Subject: [bangla-vision] Corrupted Government Continue its course - CAG
On Air India
In June, a draft CAG audit report on performance of private energy companies, including RIL and Cairn, had criticised them for mismanaging oil and gas blocks, leading to significant erosion of companies' valuations.
From: Prathiba Sundaram <prathibasam@yahoo.com>
Date: Thu, Sep 8, 2011 at 2:43 PM
Subject: [bangla-vision] Corrupted Government Continue its course - CAG
Manmohan King and Gang continue its Looting.
NEW DELHI: Fresh trouble seems to be brewing for the UPA government, as the Comptroller and Auditor General (CAG) tabled two more high-profile audit reports that could bring attention back to political corruption and misdeeds at the highest levels. The audit reports on Air India and oil exploration contracts, including the one for Reliance's KG Basin were tabled in Parliament on Thursday.
In its report on RIL's KGD6 contract, the CAG stated that the company notified discoveries without details and declared entire contract area as discovery area. RIL was found guilty of non-relinquishment of area. CAG said that the Director General of Hydrocarbon should have stopped RIL from proceeding with phase 2.
The report said that the Oil Ministry should have reviewed the determination of contract area. It highlighted that that RIL's development activities were not guided by initial development plan. CAG has asked the government to amend all future production sharing contracts.
The CAG report on Air India covers, among other things, the purchase of 111 aircraft for over Rs 40,000 crore in 2006. CAG has made adverse observations on several aspects, ranging from the wisdom behind ordering so many aircraft by a financially weak body to the financing of the deal. The report said that Air India has accumulated debt of Rs 38,000 crore.
The Air India audit covers the period of 2002 to 2010, most of which falls under the UPA, when Praful Patel was the civil aviation minister. Raising questions about the very contract for the aircraft purchase. It has examined the merger of Air India and Indian Airlines as well.
Some points CAG mentioned in its reports
On KG Basin
In its report on RIL's KGD6 contract, the CAG stated that the company notified discoveries without details and declared entire contract area as discovery area. RIL was found guilty of non-relinquishment of area. CAG said that the Director General of Hydrocarbon should have stopped RIL from proceeding with phase 2.
The report said that the Oil Ministry should have reviewed the determination of contract area. It highlighted that that RIL's development activities were not guided by initial development plan. CAG has asked the government to amend all future production sharing contracts.
The CAG report on Air India covers, among other things, the purchase of 111 aircraft for over Rs 40,000 crore in 2006. CAG has made adverse observations on several aspects, ranging from the wisdom behind ordering so many aircraft by a financially weak body to the financing of the deal. The report said that Air India has accumulated debt of Rs 38,000 crore.
The Air India audit covers the period of 2002 to 2010, most of which falls under the UPA, when Praful Patel was the civil aviation minister. Raising questions about the very contract for the aircraft purchase. It has examined the merger of Air India and Indian Airlines as well.
Some points CAG mentioned in its reports
On KG Basin
RIL undertook procurement activities late
RIL is guilty of non-relinquishment of area
RIL extended contracts violating Production Sharing Pact
RIL did not relinquish non-performing wells
Amend all future production sharing contracts: CAG
DGH ill equipped to oversee Production Sharing Contracts
RIL to CAG: Contract area had hydrocarbon potential
DGH should have stopped RIL from proceeding with phase 2
RIL violated production sharing contract in KG-D6
On Air India
CAG terms Air India's acquisition of "large number" of aircraft as "risky", calls airlines' merger "ill-timed"
Air India has accumulated debt of Rs 38,000 crore
In June, a draft CAG audit report on performance of private energy companies, including RIL and Cairn, had criticised them for mismanaging oil and gas blocks, leading to significant erosion of companies' valuations.
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