#dnaEdit: Let institutions be

The wheel has turned full circle with finance minister Arun Jaitley’s warning at the annual conference of the Comptroller and Auditor General that the auditor should refrain from sensationalising audit findings. The irony that Jaitley who would not miss an opportunity to pounce on the CAG’s loss figures on the 2G spectrum and coal block allocation scams as Leader of Opposition in the Rajya Sabha is singing a different tune while in government is hard to miss. Jaitley flagged the auditor’s propensity to get into the headlines and cautioned that where two views could be possible on a decision that was already taken, the auditor must take a more liberal approach. Even while admitting the need for an active auditor, Jaitley noted that activism and restraint were two sides of a coin. Interestingly, Jaitley’s views came soon after Congress leader and Public Accounts Committee chairman KV Thomas said the CAG should restrict audits to financial impropriety rather than putting out astronomical figures for “notional” losses.  

What made the CAG reports on the 2G spectrum and coal block allocations sensational and grabbed headlines was the conscious attempt by the CAG to put out various estimates of losses as a result of forgoing the auction route in allocations. In the past, Jaitley has said the CAG’s loss figures of Rs1.76 lakh crore in 2G and Rs1.86 lakh crore in the coal block allocations were real and slammed the UPA government for calling these losses notional. He had also been quoted as saying that the CAG was almost correct in the presumptive figure of losses. In contrast, the Congress sharpened its attack on the CAG and judiciary blaming them for the “policy paralysis” that had set in. The BJP countered this by rightly blaming the Congress regime for continuously undermining watchdog institutions with reckless criticism, illegitimate appointments and influencing decision-making. Now the opportunity beckons to honour rhetoric and adopt positions that nurture institutions. The BJP will find it hard to deny the role of these reports in helping it return to power. It is understandable then, why, Jaitley who as Opposition Leader with no qualms about the CAG’s activism now sees it as a double-edged sword.

Interestingly, Jaitley notes that a learning process has resulted from the two CAG reports on auctioning valuable resources but has come at a heavy cost due to cancelled contracts. Jaitley appears to be worried that activist positions by watchdog institutions could harm his government’s economic plans even as he admits that without accountability, transparency and uncomfortable questions being asked, governance could become despotic. This tendency across the political divide to pre-empt inconvenient actions of constitutional bodies by publicly drawing the line for them is unhealthy for our democratic evolution. The government’s actions in the first few months have raised doubts about its commitment to strengthening institutions. The absence of a Leader of Opposition in the Lok Sabha robs the selection committees for the Lokpal and the NHRC of an important voice and consensual choice. The rejection of the Supreme Court collegium’s recommendation on appointing Gopal Subramaniam as a judge appears to have been dictated by extraneous reasons. Nearly two months have elapsed with the Central Information Commission functioning without a chairperson. These are all institutions which serve as checks on the power of the State. Unlike the UPA, which failed to turn public opinion despite the constant tirade against institutions, Jaitley represents a government starting on a clean slate and riding an overwhelming mandate. While his view could find takers now, trusting institutions to do their job is the better alternative.