• In any large scheme, there are an equally large number of vested interests. How does the CAG protect its auditors?

We have guidelines when we do a study. We create a model, a methodology. The methodology gets prepared here, in the headquarters. A lot of study, sifting goes in the preparation of that methodology at various levels — lowest, intermediary and the highest. At every level there is a sifting out of external factors to ensure that no subjective elements enter. Audit has had no role in formulation or implementation of policy.

• Since it goes into such details, shouldn’t the CAG get into a prescriptive role?

Only when called for. When we shut the door in somebody’s face, we open a window. We say this is the procedure you followed. Possibly this procedure would have been better. It is not prescriptive but it is recommendatory. Then the executive has to take a decision on whether that’s the correct policy or not. So, when called upon we will help in formulating a policy.

• PSU heads say the CAG is a nuisance. How do you expect us to compete with one hand being held by the CAG and the other by the CVC? The CAG is also notorious for looking at Rs 50 vouchers, Rs 20 food bills and so on...

I’m in total agreement with you. It is not worth the CAG officers’ time to look at Rs 100 telephone bills or Rs 200 staff car bills. I’m taking a new line. I’m saying forget micro issues, we are cut out for macro issues. Our job is to improve governance or administration. We have to recommend how we can improve efficiency of administration. For instance, if Rs 100 leaves the government’s coffers, how do we ensure it reaches beneficiaries?

... contd.