Vaju Vala says CAG reports only a presumption

The state government has come under severe criticism from the Comptroller and Auditor General of India (CAG), but the government doesn't seem to be too concerned about the accusations. "The observations made by the CAG in its reports about the functioning of state PSUs and government departments are only its presumptions. These observations are not an indictment of the government in any manner," said Vaju Vala, state finance minister, told reporters.

Vala said CAG reports are submitted to the Public Accounts Committee (PAC) of the state assembly, which thoroughly looks into the CAG's observations. "Since 1960, the PAC has not found a single irregularity as observed in CAG reports, and has cleared the PSUs and departments of any wrongdoing," the FM claimed.

The senior minister said CAG reports of 1996-97 and 1997-98 had been tabled before the PAC, but the Committee had not indicted the government for even one irregularity. He said CAG reports from 1998-99 to 2004-05 had been submitted to the Speaker, who would forward them to the PAC.

CAG reports for the year 2010-11 were tabled in the state assembly on March 30.

The watchdog severely criticised the functioning of the government and state PSUs, and pointed out alleged irregularities and wasteful expenditure of Rs16,706 crore.

The CAG also pointed out several instances wherein the government had extended undue favours to corporate houses. CAG also pointed out various instances of social, environmental and ecological losses to the state.