[Marxistindia] CAG Report: An Obfuscation

[news from the cpi(m)]

February 13, 2019
 
Press Statement
 
The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:
 
CAG Report: An Obfuscation 
 
The report tabled in the Parliament on the last day it met before the
general election by the Comptroller and Auditor General `On Capital
Acquisition in Indian Air Force', raises more questions than providing
answers.
 
1)    The report does not cover the issue of offset contracts.  Hence, there
is no mention of the Reliance Defence and how  the original public sector
partner, Hindustan Aeronautics Limited (HAL), who was to manufacture 108
fighter jets was summarily removed by offset contract.  This, we are
informed, will be dealt with a separate CAG report!
2)    The CAG report claims that the new Rafale deal 2016 is 2.86 per cent
lower than the costs worked out in the earlier 2007 deal. 
3)    However, in the 2007 deal, the Indian government was to incur a fixed
cost for design and development for 126 aircrafts. When the Modi government
violating all norms of procedure and without any rationale reduced the
numbers to 36, the cost per plane shoots up dramatically by more than 41 per
cent.  The CAG, as the auditor, was duty bound to cover this issue, which it
did not.  
4)    The CAG admits that, because there is no bank guarantee in the present
deal, it is a saving for Dassault Aviation and not for Indian government.
The Hindu newspaper today reveals that the Indian Negotiating Team (INT) had
worked out the financial impact of no bank guarantee to be 574 million Euro.
5)    All the calculations presented by the CAG is devoid of absolute
figures.  The report only speaks in terms of percentage changes.  This is an
unusual audit report completely devoid of transparency.
6)    One of the key arguments of the Modi government was that national
security concerns demand fighter planes urgently and, hence, the new deal.
But the report notes that of the current 36 planes, the first 18 will come
as late between 36 and 53 months and the balance by the 67th month.
7)    The 2007 deal incorporates an element of technology transfer to the
HAL for the manufacture of the remaining 108 fighter jets.  This deal by
Modi government has no element of technology transfer. This should have
brought down the price per aircraft substantially. But the contrary has
happened.
 
It is, hence, clear that this deal by the Modi government is costlier; it is
not faster in terms of delivery and, importantly, Indian Air Force does not
procure the planes in quantity it actually needs.  Therefore, this deal has
imperiled our national security interests.
 
The Polit Bureau of the CPI(M) demands that the eight-page dissent note by
key members of the INT published in The Hindu today must be replied to by
the government.  Further, the government must clarify that unlike its
submission to the Supreme Court, has it also kept the CAG in the dark by not
providing all materials?
 
This CAG report does not answer a single question concerning the corruption
associated with this deal and crony capitalism.  These answers can only be
provided by an appropriate independent probe later.
 
This report is a total obfuscation of truth.  This has, once again,
reconfirmed the manner in which the independence and autonomy of
constitutional authorities is being assaulted by this Modi government. 
 
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