Trinamool Congress member Sukhendu Sekhar Roy wondered if it will not be a "conflict of interest" to discuss defence deals in the presence of Comptroller and Auditor General Shashi Kant Sharma, who was earlier Defence Secretary.
Roy noted that the CAG is examining a number of matters including some deals and has submitted a report on some of them.
"How can the CAG sit here, when we are examining those reports," Roy asked.
PAC Chairman K V Thomas, however, reminded him that the issue of appointment of Sharma as CAG had been settled earlier.
More From This Section
The Supreme Court had rejected a plea seeking quashing of appointment of Shashi Kant Sharma as the CAG.
The issues were raised in the presence of Sharma, who made the customary CAG briefing in the first meeting of the newly-constituted Public Accounts committee headed by senior Congress leader K V Thomas.
The demand was also supported by BJD's B Mahtab, who said that there should not be any bar on PAC taking up even those issues that are being investigated by agencies like the CBI or those pending before the courts.
Mahtab also cited that PAC had looked into CAG reports on coal block allocation.
Thomas, however, remained non-committal over the demand and asked the members to write to him about the issues that they want to discuss.
Naik's insistence that the PAC should examine the
implementation of the Prime Minister's pet programme appeared to be a strategy to put the BJP on defensive.
On the AgustaWestland issue, the CAG had submitted a report in August 2013, concluding that the process, from framing of quality requirements to the conclusion of the contract of the VVIP choppers, differed from established procurement procedures.
The report came before the PAC of that time, which was then headed by BJP's Murli Manohar Joshi but the PAC did not take up the issue then.
The issue has led to a huge controversy during the recently concluded Budget Session of Parliament with members from Congress and BJP sparring over it for days.
While the government vowed to track down the main beneficiaries of the kickbacks so that "we can do" what "we could not do in Bofors", Congress said it was ready to face a probe that is monitored by the Supreme Court.
The PAC has 15 members from Lok Sabha including Kirit Somaiya, Anurag Singh Thakur, Nishikant Dubey, Janardan Singh Sigriwal, Riti Pathak, Abhishek Singh, Shivkumar C Udasi (BJP), Sudip Bandyopadhyay (TMC), Prem Singh Chandumajra (Akali Dal), nominated MP from Kerala Richard Hay, Gajanan Chandrakant Kirtikar (Shiv Sena), Bhartruhari Mahtab (BJD), Neiphiu Rio (Nagaland Peoples Front) and P Venugopal (AIADMK).
Naik also wanted the PAC to take up the CAG report on PPP projects to examine PPP projects.
The previous PAC, whose term ended last month, had recommended that the CAG should also have the power to examine PPP projects as public money is involved there.
Members felt that it's an issue on which the government has to take a policy decision as private parties are against the CAG examining expenditure decisions in PPP projects.
up the CAG report on purchase of trainee aircraft in which the audit watchdog has found certain irregularities.
After the meeting, a senior member of the panel said that the committee is inclined to take up issues like the implementation of Food Security Act and the CAG report on PPP projects.
A member is learnt to have said in the meeting that it should be examined how much allocations were made to states under the 12th, 13th and 14th Finance Commission and how much of that money has really been given to them.
Nishikant Dubey from the BJP wanted the CAG to look into the implementation part of the UPA's Land Acquisition Act and RTI, the sources said.
He is learnt to have said that while the Finance Commission is devolving 42 per cent of gross tax revenue to states, what is its impact on Centre-state relations.
Another member said that the PAC can take up only a limited number of issues and cannot have many sub-committees to examine specific issues. The previous PAC had five sub-committees, which were looking into different issues.
In his briefing, the CAG suggested 10 issues to the PAC that could be taken up.