DRAFT PRESS RELEASE: CORRUPTION IN THE SELECTION OF AUDITOR IN GOVT. SECTOR 1) Should press be involved? if yes, than send the revised press release to reporters you know, after any modifications and request them to take up this issue on priority. Help yourself and help your Profession. No one from out of world will come to solve issue. We, all, if use the help of media too , can solve issue faster. 2) Draft press release. DRAFT PRESS RELEASE CORRUPTION IN THE SELECTION OF AUDITOR OF GRAM PANCHAYAT AND PANCHAYAT SAMITI AND OTHER GOVT. SECTOR: BY CA NITESH MORE Mahatma Gandhi’s dream of Panchayati Raj is in danger. PM of India has already accepted that only 15-20% of money reaches in the hands of poor (targeted) persons. Auditor’s are being appointed for Gram Panchayat, Panchayat Samiti etc and other Govt. sector, ALL OVER INDIA. There is no standard procedure for selection of auditor all over country. Collectors had vested with the wide power and can appoint any one of His desire who participated in tender. This has lead to corruption in the process of selection of Auditor. WHAT SHOULD BE APPOINTMENT AND SELECTION PROCESS? There should be uniform standardized procedure and basis for selection of auditor for govt sector. Such basis should be framed and disclosed to the CA community. Power of arbitrary appointment to collector is not good for the health of Democracy in the country. Fees should be predetermined in the tender and should be fixed in consultation with ICAI. Invitation (tender)should be only to make a data base of who is interest to audit. Principal of equal distribution of work should be followed and work should be distributed among CAs on rational basis, which if implemented will leave less scope of corruption in the selection of appointment of auditor. Again, Central Govt. should appoint auditor instead of collector. In many cases, collector demands EMD and application fees. As for Example, In Angul ISSUES IN ANGUL DISTRICT: For participation in tender for Panchayat Audit in Angul District (last date: 29 July, 2013): Rs 30000 is being demanded as Earnest Money Rs 1050 is being demanded as cost of application form, even if application form is available for download from web site So, If 100 CA participate in tender, than they will make money of 1 lakh (1000 X 100) from us. CONTACT DETAILS: CA ARVIND AGARWAL, COLLECTOR, ANBUL DISTRICT: 9437572567 MY QUESTIONS: 1) SHOULD APPOINTING AUTHORITY MAKE MONEY FROM CAs? 2) ARE CAs A CONTRACTOR AS DEPOSIT MONEY IS BEING DEMANDED? MY APPREHENTIONS: 1) OTHERS WILL DEMAND IN FUTURE AS ANGUL HAS DEMANDED EARNEST MONEY AND FEES FOR FORM. 2) QUANTUM of EMD and form fees CAN BE INCREASED IN FUTURE. QUESTIONS TO BE ASKED TO CENTRAL GOVT. , STATE GOVT. , PANCHAYATI RAJ DEPARTMENTS AND COLLECTORS: 1) Why do you appoint auditor by tender process? Why do not you fix the fees of auditor and only invite application from CAs to select auditors ? Why the recommendation of finance commission for a fees of 1500/ month for audit of gram Panchayat etc is violated? 2) Why some collectors are taking deposit money, however others are not taking EMD and Why collector of Angul district is charging 1050 as fees of form while, others are generally charging form fees of Rs 104? 3) So, if 100 CAs participate in tender, than you will make money of 1 lakh (1000 x 100). Should you make money from appointment of auditor? 4) Are CAs a contractor as you are asking for EMD of Rs 30000? 5) Don’t you think that asking EMD is not good for independence of auditors? 6) Even companies act requires that a ca who is indebted to company or holding securities cannot be appointed as auditor. how can you impose EMD? Is this not violation of international practice of appointment of auditors? 7) What parameters they use to judge the quality need for the work and quality which a CA participating in tendering process? If you do not have parameters, why you do not ask ICAI to help in the matter? ~ Courtesy - CA. Nitesh Kumar More | FCA | Mobile: - +91 9883157484
Posted on: Tue, 30 Jul 2013 12:55:53 +0000
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