The PAC report on the 2G scam

Despite being consistently misled by the telecom ministry under A Raja, the Prime Minister gave an “overriding preference” to the DMK leader’s plea to reject the law ministry’s strong recommendation that allocation of spectrum be examined by an empowered group of ministers. The decision not to refer allocation of 2G airwaves to the group of ministers was crucial in facilitating the scam as it permitted Raja to bend the first come, first served policy to award licences to a set of telecom players for alleged bribes and pull wool over the PMO’s eyes. It is ironic that the public accounts committee paints the PM and his office in poor light as this was the very committee Singh had volunteered to present himself before to thwart the opposition demand for a joint parliamentary committee. While PAC chairperson M M Joshi was then seen as a towering opposition leader capable of probing the 2G scam in a fair and balanced manner, the BJP MP is now being pilloried for being biased and accused of working on a “hidden agenda”. The account of Raja’s audacious disregard for any attempt to prevent him from under pricing spectrum and making the award of licences more transparent bordered on “open defiance”. It projects the PM as a victim of coalition compulsions – a theme Singh has referred to himself – while the PMO is reduced to a mute spectator. The draft report dismisses PMO’s response that no suggestion from the law ministry seeking an e-gom was received pointing out that Raja himself apprised the PM of the law department’s view. “But the counter view of the communications minister got overriding preference for unknown reasons and no effort was made by PMO to initiate an e-gom,” the report says. So while there are instances where Raja might have pulled a fast one, in some cases Singh sided with the ex-minister. There was also a reluctance to restrain the DMK MP, the report notes. Even though Raja made no secret in a letter of December 26, 2008, of being a man in a hurry to deliver telecom licences, the file was not put up to Singh till 12 days later. Once licences were awarded, the PM sought to distance himself from what was a shady decision with his office noting that his views on the issue be communicated “informally” to telecom ministry. This “arm’s length” approach failed to save the telecom fire from reaching Singh in the long run. The report notes that PMO failed to treat the difference of opinion between law and telecom ministries in a proper manner. According to government business rules, it should have been referred to the cabinet but this did not happen. While the PM’s inaction just ahead of licences being awarded and his acknowledgement of Raja’s letter is seen as a green signal by the PAC, the report says that the tone of the DMK leader’s December 26, 2008 communication demonstrated a sense of one upmanship and arrogance bordering on defiance.

FROM THE PAC FILES
Recommends stringent punitive action against those responsible for furnishing wrong information to Parliament, suppressing facts and deliberately misleading the Prime Minister The 2G scam should be an eyeopener for Cabinet secretariat and PMO to at least now start vigorously monitoring effective compliance of cabinet decisions
Suggests cleansing of bureaucracy, proposes cooling-disconnect of three years for secretary level officers after retirement
Whistleblowers be given statutory protection from the harassment, demotion, physical & financial harm
Government must evolve procedures to recover unlawful gains made by those responsible for the staggering national loss
Calls for stringent anti-corruption laws to deter public servants and provide speedy trial
Calls for CBI to be governed by new legislation to safeguard autonomy and independence
Calls for a panel comprising Prime Minister, home minister, Supreme Court judge and leader of opposition for appointment of CAG, CVC & director CBI

WHAT IS THE PAC?
Public Accounts Committee is the oldest committee of Parliament It is strictly a committee of the Lok Sabha with associate members from Rajya Sabha, but they have equal rights It has no more than 22 members, on a representative basis from the government and opposition. By tradition its chairman is a nominee of the opposition PAC usually looks at C&AG reports, but it can also take suo motu notice of other aspects of government expenditure

WHAT HAPPENS NEXT?
The PAC report would be placed before the committee for its final approval.
Then it would be send to the Lok Sabha Speaker .
The speaker would send it to the government for action.
The govt would consider the recommendations and report back with an action taken report. Normally, wherever government cannot act on a PAC recommendation, it explains why Traditionally, when the House assembles PAC reports are not discussed in full
But a discussion is possible through a motion demanding a discussion on the report
Members can discuss aspects of its findings through questions and other instrumentalities of House proceedings