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Uproar over CAG letter to YSR

Opposition’s grilling puts Treasury Benches on the backfoot

HYDERABAD: A letter written by the Comptroller and Auditor General of India to the Chief Minister seeking remedial action on irregularities in the award of contracts for six irrigation projects across the Godavari triggered an uproar in the Assembly on Thursday.

The Treasury Benches found themselves on the backfoot when the Opposition parties made a concerted attack on the government for failing to take action on the CAG’s report for 2006-07 which held that the agreements signed for these were in favour of contractors and did not contain provisions to protect the government’s interest. They later said the letter addressed by CAG Vinod Rai directly to Chief Minister Y. S. Rajasekhara Reddy had few precedents and showed the unhappiness of the Constitutional body. Mr. Rai wanted action on eight observations in the CAG’s report, including high non-plan expenditure, poor implementation of schemes for education of SCs and STs, irregularities in irrigation contracts, failure to meet targets in police modernisation, budgetary indiscipline in the medical education department and loss of revenue due to non-realisation of taxes.

Leader of Opposition N. Chandrababu Naidu said the government, instead of recovering the liquidation charges from the contractors, ratified the terms set by contractors through its orders, thus making irrigation projects ‘permanent burden’ on the people. He demanded that the government allow examination of files pertaining to the projects by a committee of floor leaders but the demand was rejected.

The CPI (M), CPI, TRS and the BJP staged a walkout in protest against the government’s failure to check the escalating costs of the projects and delay in their completion. The Telugu Desam members too left the House later as the Chair refused permission to prolong the debate on the CAG’s letter.

Angry exchanges

The issue that came up during the Question Hour led to angry exchanges with Major Irrigation Ponnala Lakshmaiah insisting that nothing was done contrary to the agreements. A new ayacut of 14.5 lakh acres had been created so far while another 15 lakh acres would be irrigated by the end of the current year.

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