Tamil Nadu government audits can be vetted by private company

Director General of Audit post has been created to oversee operations of five audit directorates including Local Fund, Cooperative, Milk Cooperative and HR&CE institutions.
Representational image (File photo| EPS)
Representational image (File photo| EPS)

CHENNAI: The Tamil Nadu government has created a new post of Director General of Audit (DGA) to oversee all audit departments, including Local Fund Audit, Cooperative Audit, Audit for Milk Cooperatives, and HR&CE institutions, under the administrative control of the Finance Department.

The DGA will exercise general supervision and control over the audit directorates. All proposals to the government on postings, transfers, other establishment matters, and budget and Assembly-related matters will be routed through the DGA, a G.O. issued by Finance Secretary N Muruganandam said.

The DGA can be appointed from the Indian Audit and Accounts Service (on deputation), Indian Administrative Service belonging to Tamil Nadu cadre. The official can also be appointed through the lateral entry system by selecting a person experienced in the public sector or private sector audit from the open market.

The DGA has the power to invite a private audit firm to do a special audit of any organisation under its audit jurisdiction. The staff of the five audit directorates should report to the DGA. The cadre in the respective directorates, however, will continue as independent cadre, even though DGA may propose changes in the respective service rules to facilitate transfers between cadres in equivalent positions.

The power to approve audit reports, currently vested with the directors concerned, will continue to rest with them. The DGA, however, will have the power to review the reports. The special audit the DGA can order may be a financial audit, transaction audit or performance audit.

Referring to the lateral entry system for recruiting the DGA from private sector and that the DGA thus appointed has the powers to invite a private audit firm to do a special audit of any organisation, AIADMK coordinator O Panneerselvam said, "These clauses in the G.O. are against the Constitution and these moves are acts of insulting the present IAS officers and other government employees. He recalled that as Leader of the Opposition four years ago, Stalin stoutly opposed the Centre’s move to appoint joint secretaries in various ministries through lateral entry system."

Related Stories

No stories found.

The New Indian Express