This refers to the editorial "CAG is not the answer" (April 22). Whereas government audit lays stress on reporting deviations from set procedures and policies, that of private companies is essentially for the protection of shareholders' interests and measuring compliance vis-a-vis rules and regulations of running the business. It is worth considering whether for public-private partnerships (PPPs), a pre-audit of the key features of the collaboration could prove better than delving into the nitty-gritty of accounting post audit. When fair competition is ensured, the market will set the right price. The crux must lie in the transparent manner in which contracts are drawn up and that partners on either side get reasonable protection against unforeseen factors. This is where the the Comptroller and Auditor General could step in to guide the template of major PPP projects.
The CAG was perhaps not meant to be merely an auditor. It submits its reports to the president, who causes them to be laid before Parliament - the measure of a well-informed and empowered institution. The CAG cannot be reduced to merely reporting lacunae of failing ventures.
R Narayanan Ghaziabad
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