Public Accountability Committee ( PAC) is actually a committee accountable to Indian Public.
A Public Accounts Committee has been constituted under the Chairmanship of Mr. K C Venugopal, Lok Sabha Member and Congress leader. PAC is the organ through which Parliament oversees the functioning of the Executive. The newly constituted committee on 02.09.2024 notified that it had picked up 161 subjects for deliberations during its term, most of them based on CAG reports.
The panel also picked up five subjects suo motu — reforms in the banking and insurance sectors; review of the implementation of centrally sponsored welfare schemes; policy measures underway for transition in the energy sector; performance review of regulatory bodies established by Acts of Parliament and the levy and regulation of fees, tariffs, user charges, on public infrastructure and other public utilities. The PAC, has made use of the rule which states that its functions can go “beyond the formality of expenditure to its wisdom, faithfulness, and economy”. It’s being said that this rarely used rule is being used to make a political point.
The constitutional essentially envisions that Parliament controls the country’s finances. All expenditure of the government needs to have prior sanction from Parliament. The CAG examines and audits the financial functioning of all government departments. CAG reports are sent to the PAC. One of the points which everyone knows PAC is keen to investigate is the charges against SEBI Chairperson, Ms Madhabi P. Buch and the Adani Group. BJP has already opposed any PAC investigation into this. Amongst the 22-member PAC there are 13 members from the BJP-led NDA, 9 Opposition MPs, 4 of whom are from Congress. In a rather first-of-its-kind move, PAC has asked for a detailed review of the SEBI’s Accounts for years 2022-23 and 2023-24. It appears that PAC had never earlier called SEBI. It’s probable that Ms. Madhabi Puri Buch, SEBI Chairperson may be summoned. While, a BJP lawmaker stated there was no government report suggesting any financial malpractice in SEBI and the PAC can’t take reports from any other source, including newspapers, into cognizance.
Mr. Saugata Ray, Trinomial MP it is said told PAC Chairman that PAC should call Ms. Buch with regard to the recent allegations against her and to review the working of SEBI. But BJP lawmaker Mr. Nishikant Dubey is learnt to have raised a number of technical points to counter Mr. Ray. Mr. India Girish Chandra, Comptroller and Auditor General (CAG) reportedly said people are aware of developments. Mr Murmu is learnt to have further said that the only body where a performance review was done was the Pension Fund Regulatory and Development Authority but also added that it was done during a period when it was established by a resolution by the Government of India to promote, develop and regulate the pension sector in India and before Parliament turned it into a statutory body through an act in 2013.
CAG officials say that the body had the right to do a performance audit of any statutory body such as SEBI or PFRDA – If there is any transaction of even one rupee from the consolidated fund of India. The PAC has finalized 161 subjects, including – Performance review of regulatory bodies established by Acts of Parliament, to be taken up for the next five years. SEBI officials and Ms Buch could be summoned as part of the review of regulatory bodies.
Well, all this is great, CAG and PAC can go about investigating and raising issues but common citizens are more interested in the conclusion of myriad scams –
Coal allocation scam
PNB Scam
The Commonwealth Games scam
National Rural Health Mission (NRHM) scam
Satyam Scandal
Telgi Scam
Saradha Group financial scandal
Wakf Scam
BOFORS Scandal
along with the flight of Vijay Mallya, Nirav Modi and Mehul Choksi et al. The authorities do not seem to have the wherewithal of bringing the culprits to face the law. Adding to the list of misdemeanors will only result in lengthening of the Con Trick List. Solutions do not seem be on the agenda of most of the exalted bodies. Many Indians are now asking if there is no intention of cleaning, then why even wash the dirty linen in public? It will only make India go up in the list of most corrupt nations.
Since the word Public has materialized how about a question which the Public raises is investigated. Public may want to know about the entire matter of ‘Windfall Taxes’ how it got imposed and subsequently withdrawn. Public may have a right to know, how during the initial phases of Ukraine – Russia War, some Industries made humongous profits based on the Indian Government’s decision to import crude from Russia. While it was a government to government deal, Private Companies made the most of it; so much so that the ‘Windfall Taxes’ had to be imposed, possibly for the first time in India. Strange developments have taken place recently on this front. Reuters on Aug 12 , 2024, citing ET Now, reported that India’s Oil Ministry had asked the Finance Ministry to withdraw Windfall Tax on petroleum products. Apparently, since the Crude Prices had fallen the suggestion of removal of Windfall Tax was made.
For a layman, it’s not easily understood how reduction of crude prices could adversely impact profits. Or is it that the percentage of profits has fallen due to lack of demand. Maybe the profits are no longer as what they were during the initial days of Ukraine- Russia war. But should the overall picture not be seen? Its strange logic that fall of crude prices which essentially should result in greater profits for Oil Companies become the reason. That begets the question, were the bulk of profits made from Sale of Crude or Products. ONGC or OIL do not export much crude. Some Private Sector Companies are known to trade in Crude even beyond their own production capacities. High Sea Trading, which sees change in hands of Crude is done when profits matter the most. The sudden request from MoP&NG on 12.09.2024 and withdrawal of Windfall Tax wef 18.09.2024 is seen as a decision to help select companies.
The loss to the exchequer is obvious. Oil & Gas PSUs are made to shoulder huge losses when it’s not conducive to raise Products Prices although the cost is higher than the sale prices. This burden is not shared by Private Oil & Gas Companies. Even on the Government Schemes like Pradhan Mantri Ujjwala Yojana etc. the Private Sector does not participate. Theirs only to profit and not be a part of nation building. But most citizens feel that the alacrity with which the ‘Windfall Tax’ was withdrawn need to be investigated.
Would Public Accounts Committee listen to the Public?