RIL,CAG legal row resolved as Veerappa Moily steps in

“We have written to the auditor explaining the scope,extent and manner of audit it wants and the auditor agreed on the same,” Moily said,indicating that the issue has been resolved to the satisfaction of all concerned parties.

The matter hit a major snag with fresh disagreements cropping up between the two sides over the scope of the audit. RIL has been insisting that CAG can only do a financial audit and not a performance audit and had refused to share some documents sought by the auditor to begin the scrutiny in January.

According to the signed production-sharing contract between the government and the explorer it said,”in the event that the audit of the contractor by the CAG exceeds the scope of Section 1.9 of the accounting procedure”. The section recommends a financial audit only.

The auditor,on the other hand,was seeking to do a performance audit that allows the examination of the economy,efficiency and effectiveness achieved in the use of government resources.