Monday, August 27, 2012

CAG report on coal scam: PM denies allegations of impropriety



NEW DELHI: Addressing both houses of the Parliament on Monday, Prime Minister Manmohan Singh said that the the allegations of impropriety in coal block allocation are without basis and unsupported by facts.

Amidst din from the opposition, Manmohan Singh called the observations made by CAG in the coal report flawed on multiple counts. "The observations of the CAG are 'clearly disputable", Singh said. "I want to assure Honourable Members that as the Minister in charge, I take full responsibility for the decisions of the Ministry," he added. 


"The CAG says that bidding could have begun in 2006 by amending the existing system administratively. This premise of the CAG is flawed. There were no allegations of impropriety in the functioning of the Screening Committee," he said.

Singh said that the policy of coal block allocation existed since 1993 and previous governments also allocated blocks in precisely the manner that the CAG has now criticised. "It is difficult to accept the notion that a decision of the Government for legislative change in policy should come for adverse audit scrutiny," Singh added.

Manmohan Singh Government, for the first time, conceived the idea of making allocations through the competitive bidding route in June 2004.

Following the Prime Minister's statement, both houses of the Parliament were adjourned. Bharatiya Janata Party (BJP) members persisted with their demand for Prime Minister's resignation over 'faulty' allocation of coal blocks.

Speaking outside the Parliament, Manmohan Singh urged the opposition to debate the issue inside. Singh said that the CAG's observations will be challenged when the matter comes before Public Accounts Co. BJP is disrupting the normal proceedings of the Parliament, let the country judge where the truth lies," Singh said. He further said that he wants to assure the country that the government has a strong and credible case.

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