CAG unhappy with RIL's half documents - Business Standard

Reliance Industries Limited (RIL) has provided half of the documents sought by the Comptroller and Auditor General (CAG) and has promised to give most of the rest when the auditor returns to audit its spending on the flagging KG-D6 fields. RIL gave the documents to a CAG team during their three-week stay at the company's office in Mumbai, and wrote to it that the rest, barring a small 10 per cent, would be given when the auditor promised to return on February 11. Sources privy to the development said CAG, however, wrote back, saying it would not be coming to company office in Mumbai as promised. Meanwhile, CAG Vinod Rai wrote to Oil Minister M Veerappa Moily that RIL was not cooperating. The documents RIL declined to provide relate to its legal case against the oil ministry's decision to decline $1 billion of cost recovery as punishment for gas output from the main fields in the KG-D6 block not matching the target. RIL said such documents were in no way related to the audit of spending and revealing its strategy to counter the ministry would compromise its legal case, sources said. Also, RIL has refused to provide any documents relating to selection of technology, as it felt the auditor cannot sit on judgement using hindsight to question decisions taken six-seven years ago. Sources said the firm felt the auditor's job was to verify expenditure and not question technology selection, which can be done only in a propriety audit. Such an audit was beyond the scope provided in the production sharing contract (PSC) for KG-D6. RIL, they said, has kept the oil ministry, which had given a written assurance that CAG would follow the audit process set out in the PSC, posted about the developments through weekly updates. RIL wrote to the ministry that CAG was seeking voluminous documents of years not related to the period under audit (2008-09 to 2011-12). via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGjb2apPT9qputJdmKpNjbxe7CL8Q&url=http://www.business-standard.com/article/companies/cag-unhappy-with-ril%25E2%2580%2599s-half-documents-113022400146_1.html

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