Defence secretary made CAG; appointment raises questions
New Delhi, May 21, 2013, DHNS;
Defence Secretary Shashi Kant Sharma was on Tuesday appointed Comptroller and Auditor General (CAG) of India. He takes over from Vinod Rai, who retires on Wednesday.
Sharma, a 1976 batch Bihar cadre officer and an old hand in the Defence Ministry, will assume charge on May 23. R K Mathur, Secretary, Defence Production, is likely to become the new defence secretary.
Even before Sharma could take over, there were whispers in the corridors of power whether he would be able to maintain the standards set by Rai, who gave countless sleepless nights to the United Progressive Alliance government by his audit reports on massive financial irregularities seen during Commonwealth Games, allocation of 2G spectrum for telecommunication operators and allotment of coal blocks.
Launching an attack on Sharma, Aam Aadmi Party leader and Supreme Court advocate Prashant Bhushan questioned the legality of the appointment because of the “conflict of interests” as Sharma had served the Defence Ministry for over 10 years in key posts and “a major part of CAG’s job is to audit defence purchases.”
At a press conference, Bhushan said Sharma’s appointment was illegal and liable to be struck down for the conflict of interest entailed in his assignment. “Sharma worked in the Defence Ministry for 10 years when all important defence acquisitions were made. Such a long period for a bureaucrat in the same ministry is unusual. The UPA even granted him an extension after retirement. This indicates his proximity to UPA bosses.”
Sharma held the posts of joint secretary, additional secretary, director-general (acquisition) and defence secretary. During his tenure, defence budget swelled from around Rs 25,000 crore to more than Rs 2 lakh crore as India emerged as one of the most lucrative markets for military business.
Bhushan said the government decided to appoint “pliable” people to such posts which function as constitutional watchdogs like the Election Commission, Central Vigilance Commission and the Central Information Commission.
Pradip Kumar, Sharma's predecessor in the Defence Ministry, has been appointed the CVC by the UPA government.
Bhushan alleged the CAG “is appointed” not in a transparent and arbitrary manner as “there is no formal” system—no selection committee and no eligibility criteria. The appointment of a person as the CAG through such an arbitrary and non-transparent process compromises the principle of “institutional integrity which the Supreme Court had laid down while quashing the appointment of the previous CVC who was appointed in similar circumstances.”
Sharma, a 1976 batch Bihar cadre officer and an old hand in the Defence Ministry, will assume charge on May 23. R K Mathur, Secretary, Defence Production, is likely to become the new defence secretary.
Even before Sharma could take over, there were whispers in the corridors of power whether he would be able to maintain the standards set by Rai, who gave countless sleepless nights to the United Progressive Alliance government by his audit reports on massive financial irregularities seen during Commonwealth Games, allocation of 2G spectrum for telecommunication operators and allotment of coal blocks.
Launching an attack on Sharma, Aam Aadmi Party leader and Supreme Court advocate Prashant Bhushan questioned the legality of the appointment because of the “conflict of interests” as Sharma had served the Defence Ministry for over 10 years in key posts and “a major part of CAG’s job is to audit defence purchases.”
At a press conference, Bhushan said Sharma’s appointment was illegal and liable to be struck down for the conflict of interest entailed in his assignment. “Sharma worked in the Defence Ministry for 10 years when all important defence acquisitions were made. Such a long period for a bureaucrat in the same ministry is unusual. The UPA even granted him an extension after retirement. This indicates his proximity to UPA bosses.”
Sharma held the posts of joint secretary, additional secretary, director-general (acquisition) and defence secretary. During his tenure, defence budget swelled from around Rs 25,000 crore to more than Rs 2 lakh crore as India emerged as one of the most lucrative markets for military business.
Bhushan said the government decided to appoint “pliable” people to such posts which function as constitutional watchdogs like the Election Commission, Central Vigilance Commission and the Central Information Commission.
Pradip Kumar, Sharma's predecessor in the Defence Ministry, has been appointed the CVC by the UPA government.
Bhushan alleged the CAG “is appointed” not in a transparent and arbitrary manner as “there is no formal” system—no selection committee and no eligibility criteria. The appointment of a person as the CAG through such an arbitrary and non-transparent process compromises the principle of “institutional integrity which the Supreme Court had laid down while quashing the appointment of the previous CVC who was appointed in similar circumstances.”
http://www.deccanherald.com/content/333764/defence-secretary-made-cag-appointment.html
http://www.thestatesman.net/index.php?option=com_content&view=article&id=457799&catid=35
Institution deserves more respect
THE Comptroller and Auditor-General of India is the watchdog of the nation and not the lap-dog of the ruling dispensation. In the appointment of Shashi Kant Sharma as the new CAG to succeed Vinod Rai who lays down office today (Wednesday), the Congress-led United Progressive Alliance government has flouted every guideline laid down by the Supreme Court for the appointment of persons for sensitive constitutional posts. Sharma, a 1976-batch IAS officer of the Bihar cadre who has been the Defence Secretary for the last two years, had earlier served as Director-General (Acquisition) in the defence ministry earlier, and his record of service is not without blemish. The near Rs 8,000-crore cost escalation of the yet-to-be delivered aircraft carrier Admiral Gorshkov that drew sharp criticism from the CAG happened during his period as DG, Acquisition. As Defence Secretary, he could not have been insulated from the manipulation of the date of birth of General VK Singh as well as the scary report of a military coup allegedly engineered by the Army Chief. His taking over as the CAG when many of the defence deals under his watch are under the scrutiny of this very constitutional body, is a travesty of the high office.
When the Constituent Assembly was discussing the office of the CAG, BR Ambedkar said: “I am of the opinion that this dignitary is probably the most important officer under the Constitution of India. He is the man who is going to see that the expenses voted by Parliament are not exceeded or varied from what has been laid down by Parliament in the Appropriation Act. If this functionary is to carry out his duties which are far more important than that of the judiciary, he should be certainly as independent as the judiciary. I cannot help saying that we have not given him the same independence we have given to the judiciary.” President Rajendra Prasad, at the foundation stone laying ceremony of the CAG building in New Delhi in 1954, said, “I am afraid the task devolving on the CAG and his auditors is not always pleasant. He has to carry on these functions without fear or favour in the larger interests of the nation.”
The choice of Sharma as CAG is a replay of the appointment of PJ Thomas as the Central Vigilance Commissioner, struck down by the Supreme Court as non est. The apex court ruled that institution was more important than an individual. When institutional integrity is in question, the touchstone should be “public interest” which has to be taken into consideration in the selection process, the court ruled. The system of governance established by the Constitution is based on distribution of powers among the three organs of the State, one of them being the Executive whose duty is to enforce the laws made by Parliament and administer the country through various statutory bodies like the CAG, CVC and the Election Commission.
The CAG, by virtue of being a unitary authority in a federal structure, is the singular head of a hierarchical audit authority, assisted by deputy CAGs. This singularity has been consistently threatened by successive governments ever since Indira Gandhi became the Prime Minister, including the present one which tried to make it a multi-member body with a view to cutting Vinod Rai down to size. The political adventurism of the UPA government in naming Sharma as the new CAG is not likely to go unchallenged in the Supreme Court. President Pranab Mukherjee, if he is true to the oath he has taken to protect and uphold the Constitution, should ponder before swearing Sharma in.
http://www.thestatesman.net/index.php?option=com_content&view=article&id=457378&catid=38
SC to hear pil on cag
23 May 2013
statesman news service
NEW DELHI, 23 MAY: The Supreme Court today agreed to hear a PIL challenging the appointment of Shashi Kant Sharma as the Comptroller and Auditor General of India (CAG). A Bench of Justice B S Chauhan and Dipak Misra, however, said there is no urgency in taking
up the matter during vacation and posted the case for hearing in July.
Mr Sharma, a Bihar cadre IAS officer, was sworn in as the new CAG by President Pranab Mukherjee during the day. Mr Sharma, 61, a former defence secretary, succeeds Mr Vinod Rai, who demitted office yesterday on retirement. The new CAG will serve till 24 September 2017. Mr Sharma's appointment comes at a time when the CAG has come under sharp attack from the government.
Aam Aadmi Party leader and Supreme Court lawyer Mr Prashant Bhushan flayed Mr Sharma's appointment as the CAG, terming it illegal and unconstitutional. Mr Bhushan contended that Mr Sharma has held several positions in the Defence ministry in the past 10 years and his appointment as the CAG would mean a conflict of interest.
http://www.thestatesman.net/index.php?option=com_content&view=article&id=457799&catid=35
edits
21 May 2013
CAG NOT A LAP-DOGInstitution deserves more respect
THE Comptroller and Auditor-General of India is the watchdog of the nation and not the lap-dog of the ruling dispensation. In the appointment of Shashi Kant Sharma as the new CAG to succeed Vinod Rai who lays down office today (Wednesday), the Congress-led United Progressive Alliance government has flouted every guideline laid down by the Supreme Court for the appointment of persons for sensitive constitutional posts. Sharma, a 1976-batch IAS officer of the Bihar cadre who has been the Defence Secretary for the last two years, had earlier served as Director-General (Acquisition) in the defence ministry earlier, and his record of service is not without blemish. The near Rs 8,000-crore cost escalation of the yet-to-be delivered aircraft carrier Admiral Gorshkov that drew sharp criticism from the CAG happened during his period as DG, Acquisition. As Defence Secretary, he could not have been insulated from the manipulation of the date of birth of General VK Singh as well as the scary report of a military coup allegedly engineered by the Army Chief. His taking over as the CAG when many of the defence deals under his watch are under the scrutiny of this very constitutional body, is a travesty of the high office.
When the Constituent Assembly was discussing the office of the CAG, BR Ambedkar said: “I am of the opinion that this dignitary is probably the most important officer under the Constitution of India. He is the man who is going to see that the expenses voted by Parliament are not exceeded or varied from what has been laid down by Parliament in the Appropriation Act. If this functionary is to carry out his duties which are far more important than that of the judiciary, he should be certainly as independent as the judiciary. I cannot help saying that we have not given him the same independence we have given to the judiciary.” President Rajendra Prasad, at the foundation stone laying ceremony of the CAG building in New Delhi in 1954, said, “I am afraid the task devolving on the CAG and his auditors is not always pleasant. He has to carry on these functions without fear or favour in the larger interests of the nation.”
The choice of Sharma as CAG is a replay of the appointment of PJ Thomas as the Central Vigilance Commissioner, struck down by the Supreme Court as non est. The apex court ruled that institution was more important than an individual. When institutional integrity is in question, the touchstone should be “public interest” which has to be taken into consideration in the selection process, the court ruled. The system of governance established by the Constitution is based on distribution of powers among the three organs of the State, one of them being the Executive whose duty is to enforce the laws made by Parliament and administer the country through various statutory bodies like the CAG, CVC and the Election Commission.
The CAG, by virtue of being a unitary authority in a federal structure, is the singular head of a hierarchical audit authority, assisted by deputy CAGs. This singularity has been consistently threatened by successive governments ever since Indira Gandhi became the Prime Minister, including the present one which tried to make it a multi-member body with a view to cutting Vinod Rai down to size. The political adventurism of the UPA government in naming Sharma as the new CAG is not likely to go unchallenged in the Supreme Court. President Pranab Mukherjee, if he is true to the oath he has taken to protect and uphold the Constitution, should ponder before swearing Sharma in.
http://www.thestatesman.net/index.php?option=com_content&view=article&id=457378&catid=38